Government Spending Programmes - Demand Stabilization

Essay from the year 2009 in the subject Business economics - Economic Policy, , language: English, abstract: 1. IntroductionOn the 5th of November 2008, Germany introduced its first government spending programme. The main purpose of this package was to actuate investments of companies, government, municipal governments and private households of about €50 billion. Moreover it was created to ensure further funding of companies.As there were a lot of voices criticizing it as too little to fight against the current crisis combined with a further escalation of the crisis, the government decided to announce a second spending programme in January 2009. Main points of this stimulus package were fostering private consumption, governmental investments and financial aids for firms. Both two-year spending programmes are worth of €82 billion.