Sixth, against the background of growing government fiscal deficits, both in Europe and the United States the fiscal situation of the government has become an issue of growing academic concern. As a result, a substantial number of important studies on the need for balanced budget rules have been published, establishing the theoretical framework for the necessary change towards fiscal consolidation.
There are many indications that a considerable number of “small savers”, in particular, are not fully in a position to protect themselves against inflation-induced financial losses. Hence, price stability fulfils a crucial social function: It protects the “man on the street”, in particular, from being gradually dispossessed by creeping inflation. Finally, inflation acts as an additional tax.