Regime change in public debt? Lessons from reunification

Article by Dr. Christian Jasperneite

Over three decades ago, Germany accomplished a mammoth economic task with reunification - financed by massive government investment and debt. Today, the country is once again facing major challenges: Economic stagnation, an investment backlog and security policy uncertainties require decisive action.

But what parallels are there with the situation back then? Is a new wave of debt-financed programs inevitable? And what impact could this have on capital markets and bond yields?

In the current issue of "Economic Situation & Strategy", we analyze why the current situation is in many ways reminiscent of the early 1990s - and what this means for investors.