![]() Germany has also adopted this rule and the countrys spending growth was reduced to below 0.2% from 2003 to 2007. The country has also increased its economic output faster than its spending. ![]() As a result, since 2004 the country has managed to keep its spending growth under 2% per year. As part of the policy, the Swiss government limited their spending to the projected revenue in the financial year. Switzerland is one of the countries that adopted the golden rule successfully in formulating their economic policy. The countries that adopted the golden rule policy witnessed a significant reduction in their deficit after applying the rule. However, in all the countries the basic is the government spends less than it earns. In most of the cases, the countries had to make some changes in their constitution in order to apply golden rule completely. The golden rule has been applied by many countries in their fiscal policy although the nature of application differs from one country to another. According to the golden rule of fiscal policy, a government is only allowed to borrow money to invest it and not utilize it for the benefit of the current generation. In economic policy, the golden rule is not to burden the future generation with debt. ![]() The term Golden Rule was originally used in some ancient religious writings and the most popular version of it says, Do unto others as you would have them do unto you. Back to: ECONOMIC ANALYSIS & MONETARY POLICY Why is the Golden Rule Important for Fiscal Policy? ![]() That means a government should borrow money only to invest them for the benefit of the future generation and all the present expenses should be covered by tax revenue. In Borderlands 3 Class Mods have 2 or 3 random Stats out of these 4 Categories.In modern economics, the Golden Rule is an economic policy that says, a government must only borrow money for investing and not for funding the regular expense. ![]()
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