Demokratische Wirtschaftspolitik

Benefits: The latest approaches in economic theory and policy tailored for bachelor's and master's studies.

About the work: This textbook emphasizes the relationship between economics and politics and systematically examines the effects of self-interested actions by all decision-makers, including the government and economic policy advisors. When politicians, bureaucrats, and economic policy advisors are part of the political process, economic policy becomes more complex than when relying on the traditional concept of a 'benevolent' dictator. In a general theory of economic policy, the main goal is to propose rules that are agreed upon at the level of basic consensus and guide subsequent actions in the ongoing political process. Accordingly, the economic policy options at the level of societal basic consensus are at the center of this textbook. Additionally, economic policy in the ongoing political process is addressed. Economic policy advisors are an important part of the political process, and their activities are also covered.

About the new edition: Since the third edition, published in 2002, significant events such as the 2008 financial crisis, rising inflation, the Covid-19 pandemic, and Russia's war of aggression against Ukraine have shaped economic and political developments. Despite or precisely because of these events, the rules at the level of basic consensus, the decisions in the ongoing political process, and the different incentives and roles of the involved actors remain essential. This new edition takes into account the latest approaches and developments in the economic theory of politics as well as general economic theory. Due to the changes resulting from the financial crisis, one chapter is dedicated to public debt.

Target audience: For lecturers and instructors.