"MAGIC SQUARE"
| GERMANY |
| MAGISCHES VIERECK "MAGIC SQUARE" |
A term relating to economic policy which has its origin in the Stability Act of 1967. It signifies the four main aims towards which the economic policy of the Federal Government and the Länder should be directed: price stability, a high level of employment, balance of payments equilibrium, and steady and adequate economic growth. The equal status of all four aims in the context of economic and fiscal policy led to their being dubbed the "magic square". In practice, however, there is general agreement that these are planning precepts which to a large extent cannot be forced through and which economic policy-makers have so far failed to translate into long-term reality.
Please note: the European industrial relations glossaries were compiled between 1991 and 2003 and are not updated. For current material see the European industrial relations dictionary.
Page last updated: 14 August, 2009