chapter  3
30 Pages

A survey of economic policy

ByEric Owen Smith

Recent dramatic changes in economic policies and trends

Economic policies When the conservative-liberal coalition took office at federal level under the chancellorship of Helmut Kohl in October 1982 they announced a reorientation of economic policy. This prob­ ably proved to be the most significant feature of the policy changes known as die Wende. Helmut Schmidt's social-liberal coalition had fallen from power because of increasing pressure from his liberal partners to reduce both budget deficits and the extent of the social state - although the SPD itself had been far from complacent on the issue of budget deficits, given the nature of the deeply-rooted inflationary expectations in German society.