Expert Council: Use the opportunity to improve your image

Expert Council: Use the opportunity to improve your image

In Germany there is often no shortage of money, but many orders remain unfulfilled. The economic challenges have changed, giving the Council of Economic Experts the opportunity to polish its tarnished image and take greater account of global supply conditions. In times of such economic challenges, the prevailing economic thinking is subjected to critical scrutiny, as the importance of aggregate economic demand has been particularly emphasized over the last 25 years. Today, however, more and more voices are calling for a closer look at the overall economic offering for future economic success.

The question arises as to whether economists can keep track of both supply and demand. Paul Samuelson, Nobel laureate, addressed this issue decades ago when he stated: “God gave economists two eyes to observe both supply and demand.” The two approaches can be described in the words of Olaf Sievert, a long-time member of the Council of Experts, as follows: "Supply refers to the willingness and ability to produce in the overall economy, i.e. the production potential. Demand, on the other hand, concerns the use of the given production possibilities, i.e. the actual production."