This is somewhat less than in the UK, but it makes clear that – contrary to some popular misperceptions – Germany’s fiscal policy is markedly contributing to stabilising the economy. There is not only a structural adjustment need in the international financial system.
3 The rapid expenditure of the COVID emergency relief payments highlights the critical urgency of immediate access to funds for the many households and businesses managing cash-flow constraints. After sharply reducing their spending early in the COVID crisis, many households increased their spending starting on the day they received the emergency relief payments and continued for the following 10 days.