Policies·dk_kartoffelkur_october_1982_package

Danish 'kartoffelkur' October 1982 stabilisation package

DNK·1982 – ·enacted 1982-10-04candidate

movescentral bank independence↑spending level↓

What the policy did

Four-party Schlüter government's founding stabilisation package, October 1982. Committed to fixed krone in European ERM, suspended automatic wage-price indexation, raised indirect taxes, cut unemployment benefit indexation, and announced multi-year fiscal consolidation path. Reference case of successful ERM-based disinflation.

Policy-content fingerprint — what this policy moved, on which axes

Per invariant 3, reforms are scored by what they did on each channel-separated axis, not by the party that enacted them. This fingerprint is how the policy-match engine finds historical analogues.

intended

↑

central bank independence

monetary.central_bank_independence

De jure and de facto independence of the central bank from fiscal authority. Per D.1.5 scope, one of the framework's defensible monetary positions.

increased · strong

greater independence (legal, operational, personnel)

Fixed-krone ERM commitment disciplined monetary policy.

↓

spending level

fiscal.spending_level

General government spending as share of GDP, excluding transfers already captured under fiscal.transfer_expansion to avoid double-counting.

decreased · strong

lower spending share

Multi-year fiscal consolidation path committed.

Enacted by

denmark_schluter_konservative_1982_1988

Empirical evidence — linked hypotheses

Explicit links are curated by the author. Inferred links are hypotheses in the library that test the same axes this policy moved — the framework's answer to "what does the data say about a policy like this?".

Truss 2022 mini-budget shows that unfunded fiscal expansion above the ZLB triggers sharp bond-market and currency responses through expected-inflation and risk-premium channels.

unfunded_fiscal_expansion_above_zlb_bond_market_responseinferred

viafiscal.spending_levelmonetary.central_bank_independence

SUPPORTED — GBP/USD trough on 2022-09-26 (1.0703) was 5.02% below the 2022-09-22 pre-announcement close (1.1269); log-decline +0.0515 clears the 3.0% threshold …

supported

UK Truss mini-budget 2022 gilt crisis reflected market confidence and institutional-framework rupture rather than an MMT-predicted hard fiscal limit, because the BoE restored order by intervening as issuer.

uk_truss_mini_budget_currency_sovereign_mechanisminferred

viamonetary.central_bank_independencefiscal.spending_level

partial — Both mechanism legs are directionally consistent but at least one fails the SUPPORTED threshold: FX leg holds (5.02% trough decline); yield leg partia…

partial

UK GDP per capita (PPP, constant international dollars) diverged negatively from a matched synthetic counterfactual of similar-income anglophone/developed economies (USA, CAN, AUS, NZL, DEU, NLD, CHE) starting around 2008 and widening post-2016 (Brexit referendum).

uk_economic_decline_multi_movementinferred

viafiscal.spending_levelmonetary.central_bank_independence

INCONCLUSIVE_DATA_PENDING — treatment 'uk_post_2008' has no within-country variation under country fixed effects

run pending

The September 2022 UK gilt-market dysfunction had its operative amplification mechanism in the foreign-currency-collateral exposure of the Liability-Driven Investment (LDI) leveraged-derivative chain in the UK pension system, not in a "fiscal limit" reached by the sovereign issuer.

truss_2022_currency_user_ldi_collateral_mechanisminferred

viamonetary.central_bank_independencefiscal.spending_level

INCONCLUSIVE_DATA_PENDING — no outcome variable loaded; missing: ['boe:IUDLG7N', 'boe:IUDMNZC', 'boe:gilt_volatility (manual); ice:UK_gilt_options', 'fred:DEXUS…

run pending

Large welfare states sustain long-run real GDP per capita growth when paired with market flexibility (low product- and labour-market barriers), trade openness, and fiscal discipline (debt-to-GDP below 90%), but not when paired with rigid product and labour markets, in an OECD and rich- country panel 1980-2020.

welfare_state_market_flexibility_complementinferred

viafiscal.spending_level

PARTIAL — coef=+3.308e-18, p=0.653; effect magnitude effectively zero

partial

Japan post-1990 has run gross public-debt-to-GDP ratios from ~70% rising to ~250%, the highest sustained level in the OECD record, WITHOUT triggering inflation, currency collapse, sovereign-spread blowout, or fiscal-dominance-induced loss of monetary control.

fiscal_dominance_japan_debt_non_crisisinferred

viamonetary.central_bank_independencefiscal.spending_level

INCONCLUSIVE_PENDING_DATA

run pending

Argentine monthly CPI inflation declines from its late-2023 peak (around 25% month-on-month in December 2023 following the 54% peso devaluation) to below 5% month-on-month within 12 months of Milei's December 2023 inauguration, and below 3% month-on- month within 18 months.

milei_reforms_reduce_argentine_inflationinferred

viamonetary.central_bank_independencefiscal.spending_level

INCONCLUSIVE_DATA_PENDING - INDEC IPC Nacional vintage missing from local data/vintages; expected indec:148.3_INIVELNAL_DICI_M_26 (indec:148.3_INIVELNAL_DICI_M_…

run pending

Fiscal multipliers are state-dependent: large at ZLB, small near full employment; no single-number answer is policy-relevant.

fiscal_multipliers_state_dependentinferred

viafiscal.spending_level

REFUTED — sign - OPPOSITE claim +, cumulative_effect=-1.569, h=5, p_h=0.0155

refuted

Similar historical policies

Ranked by axis-fingerprint overlap with this policy. Direction match bolded — those are the closest historical analogues. Shape of the match is what drives policy-outcome comparison, not the country or party label.

Israeli Economic Stabilization Plan (July 1985)

ISR·1985

match

2.0

spending levelcentral bank independence

Israeli Economic Stabilization Plan 1985

ISR·1985

match

2.0

central bank independencespending level

IMF Extended Fund Facility — Sri Lanka $2.9bn (2023)

LKA·2023