Parallel policies - yes or no? Economic stimulus programme to counter the threat of recession?

How should the faltering economy be restored to health? Dr. Gustav Adolf Horn, German Institute for Economic Research (DIW) Berlin, presents the recommendations in the Joint Economic Forecast, put forward by the majority of research institutes, to let the next phase of the tax reform take effect in 2002 instead of 2003. This idea is supported by Prof. Norbert Walter of Deutsche Bank Research and Dr. Klaus Friedrich of Dresdner Bank who call for a fiscal policy with a medium- and long-term orientation aimed at structural improvements. Dr. Martin Hüfner of HypoVereinsbank also argues that the government should take the offensive. Prof. Joachim Scheide of the Institute for the World Economy (IfW) in Kiel holds the minority position of the economic research institutes and explains why "fiscal policy should not now make budget consolidation dependent on the state of the economy".