60 years of economics: A look back at the Council of Experts

60 years of economics: A look back at the Council of Experts

According to a report by www.tagesschau.de,
60 years ago today, the then Federal President Lübke signed the law establishing a “Council of Experts to assess the overall economic situation”. Since then, the economists have been advising federal politicians.

At that time, Ludwig Erhard advocated the formation of the “Council of Experts to assess the overall economic situation” through the independent council of economists. Erhard argued against the “addiction of governments and parliaments to implement popular measures and to satisfy all group wishes, which ultimately lead to the destruction of the democratic order”.

The Council of Experts was also famous and notorious for its clear words. Later, the Social Democrat Gerhard Schröder followed the experts' advice and many parts of Agenda 2010 came from them. However, there was always criticism - for example in 2009 from then-chairman Wolfgang Franz.

The impact of such an independent institution on the market or financial industry can be significant. The recommendations of the Council of Experts can be decisive for political decisions, which in turn have a significant influence on the economy and finance. In this way, the council can give the market trust and security when politicians take economic measures based on the advice. On the other hand, criticism or rejection of political decisions based on the Council's recommendations can lead to uncertainty in the market.

The role of the Council of Experts has established itself as an important part of German economic and financial policy. Despite occasional criticism of the advice or recommendations adopted, their influence continues to be significant. In this way, the Council's work can contribute to a stable and growth-oriented economic and financial environment in the long term.