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Holding Off Stimulus in Germany Isn’t Just a Political Mantra

Oct. 18, 2019, 4:00 AM

When German officials get nagged about delivering major fiscal stimulus, they have plenty of answers ready for why now isn’t the moment.

Their arguments don’t just rely on the national fixation with budget prudence and the avoidance of debt though. Officials also cite their assessment of the current situation in Europe’s biggest economy, as well as tactical considerations on how a stimulus package would be effective.

Such reasoning might be used often this week in Washington as Finance Minister Olaf Scholz and colleagues attend meetings of the International Monetary Fund, which on Oct. 15 called for Germany to invest...

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