An Assessment of the Impact of Government debt and Deficits on the Economic Growth of GERMANY

• Introduce the discussion: State briefly the aim and structure of the discussion in your own chapter of the
• Briefly describe the pattern of change in government debt and deficits, and the pattern of growth in real
GDP over the period 1998 to 2012 (inclusive). You must support this description with one Table and with a
Figure or Figures using data from the IMF World Economic Outlook, October 2012 (see below) (the Figure or
Figures must be: – labelled Figure 1.1 etc with a title, key and source of the data). You must also include
one Table of data.
• Explain what the debt and deficit are and give at least three reasons why the debt and deficit have evolved
in the way shown in your Figures
• Explain what influences the volume of debt that a country can manage
• Examine the relationship between government debt, deficits and economic growth as shown by your data and as
follows partly from government fiscal behaviour (their spending and tax raising actions) in different debt
and deficit environments. Remember that the public sector is only one part of the economy.