ABSTRACT
This chapter's point of departure is that fiscal rules are one of the most binding forms of institutional constraints. Germany and Norway are analysed as examples of countries that have adopted fiscal rules and justified them with references to a concern for future generations. The countries are similar regarding the underlying social norm of considering future generations financially, but there are differences between them. Germany has established a national fiscal debt brake in its Basic Law, comprising restrictions on how much money the country can borrow. Norway has established a fiscal guideline defining the percentage the state can use as national budget expenditure out of the Petroleum Fund. The chapter concludes that significant economic regulation is possible, with a central reason for considering future generations. However, when regulations are justified with references to future generations, they should be seen in a broader context, where environmental damages are included in discussions about what kind of resources are transferred to future generations.
