The Council of Economic Experts thus finds itself in line with other institutions which have made similar predictions. Economic output, then, is outpacing production capacity, which means that utilisation is continuing to increase. A positive factor is that the upturn in Germany is not only ongoing, but also becoming broader: besides private consumption, export demand and investment are also making a contribution to growth.
The policy could be “expansionary”, to stimulate economic growth or “contractionary”, to check the rising price levels (inflation). Fiscal policy, on the other hand, is government’s management of its revenues and expenditures to achieve economic stability. The revenues mainly come through direct and indirect taxes besides non-tax collections through privatization and auction of license (like 3G licenses in telecom sector).