In the aftermath of the current economic downturn, German policy makers turned to Keynesianism with ambivalence, hesitation, and no small amount of bad faith. Notoriously fearful of debt, government spending, and state power, the German government was among the last in the G-20 to adopt a stimulus package, as one might well have expected. And yet, German stimulus measures were actually more than met the eye and represented one of the more extensive efforts in Europe, though the rhetoric surrounding the debate over the package hewed closely to traditional German narratives about fiscal probity, debt, and inflation. This inconsistency between rhetoric and reality also characterized the German turn to austerity in summer 2009. While excoriating the Greeks for fiscal profligacy and egged on by an unsavory public discourse about southern European work habits, Chancellor Angela Merkel announced plans to cut euro 80 billion from the German federal budget over the next four years. And yet, these cuts amounted to less than they appeared and spared politically powerful groups.
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