Fiscal Stimulus Packages, Uncertainty and Economic Crisis - Is the Option of Waiting Valuable?, Forum “Preventing Recession in Europe: National vs. European Approaches“

In: Intereconomics - Review of International Trade and Development, Jg. 44 (2009) ; Nr. 1, S. 15-22
ISSN: 0020-5346
Zeitschriftenaufsatz / Fach: Wirtschaftswissenschaften
Policymakers in the EU member states are currently shaping rescue packages to prevent
the fi nancial crisis hitting their economies with unmitigated force. Each government is
responding to the emerging problems with a country-specifi c set of measures. Given
the global nature of the crisis, would coordinated action at the European level not be a
better approach? Was the German government – much-criticised for its initial reluctance
to adopt massive fi scal stimulation measures – right after all to exploit the option value of
waiting in a situation of high uncertainty?