A Supply-Side Agenda for Germany Sparks from - the United States - G

This book deals with supply-side economics and the needed reorientation it would bring to West German policy. The change, recommended after searching analysis, would add up to an overall strategy for freeing markets, for removing government-imposed distor

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A Supply-Side Agenda for Germany Sparks from - the United States - Great Britain - European Integration

With 7 Figures

Springer-Verlag Berlin Heidelberg New York London Paris Tokyo

Professor Dr. Gerhard Fels (Direktor) Institut der deutschen Wlrtschaft, Gustav-Heinemann-Ufer 84-88, D-5000 K61n 51, FRG Dr. George M. von Furstenberg (Rudy Professor) Department of Economics, Indiana University, Bloomington, IN 47405, USA

ISBN-13: 978-3-642-74278-1 DOl: 10.1007/978-3-642-74277-4

e-ISBN-13: 978-3-642-74277-4

This work is subject to copyright. All rights are reserved, whether the whole or part ofthe material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in other ways, and storage in data banks. Duplication of this publication or parts thereof is only permitted under the provisions of the German Copyright Law of September 9, 1965, in its version of June 24, 1985, and a copyright fee must always be paid. Violations fall under the prosecution act of the German Copyright Law. © Springer-Verlag Berlin· Heidelberg 1989

Softcover reprint of the hardcover 1st edition 1989 The use of registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use.

214217130-543210

Table of Contents Introducing the Agenda (the editors) ..•...•..•....•..•...... A.

1

West Germany's Current Troubles and Challenges Introduction: Globalization and the Need for Action (Gerhard Fels) •...•.....••..........•...•.... 17 Supply-Side Policies in Germany: Economics Versus Politics (Hans-Peter Frohlich) ..•...•..•.•....... 21 Zusammenfassung .............•...••....•............. 45 Europe and the Supply Side (Patrick Minford) •........... 47 Zusammenfassung . . . . . . • • . . . . . . . . • . . . . . . . . . . . . . . . . . . . . 72 Supply-Side Policies Since 1982? The Lessons are Still to be Learned (Rudiger Soltwedel) .•........... 73 Zusammenfassung . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . . . 100

B.

Helpful Insights from Supply-Side Economics Introduction: What "We" Believe In (George M. von Furstenberg) •.••....•..•.•.•...•.•...... 101 What can we Learn from the United States' Experience? (Norman B. Ture) .•..•...............•...•.......•....... 107 Zusammenfassung ....•..•...•.....••.................. 133 Supply-Side Economics: Lessons From the U.S. Experience (Beryl W. Sprinkel) .••....•..•.•............. 135 Zusammenfassung . • . • . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . . • 152 Economic Interdependence and the International Implications of Supply-Side Policies (Vito Tanzi and Lans Bovenberg) •.....••..•........•...••.•.....•.•...... 153 Zusammenfassung . . . . . . . . . . . . . • . . . . . . . . . . . . . . . . . . . . . . . 180

C.

Examples set by Great Britain and the United States Introduction: Supply Side Agenda for Germany