Bloomberg reports that Germany’s Angela Merkel refuses to stimulate the economy more than she has already done.

Chancellor Angela Merkel stood firm in rejecting any new German economic stimulus program even as the International Monetary Fund said the recession is worse than previously thought and called for measures to spur demand.

Merkel shrugged off calls for more spending despite a report by Germany’s leading economic institutes which will show tomorrow that Europe’s biggest economy may shrink as much as 6 percent this year — almost three times the contraction of 2.25 percent forecast by the government in January.

The coalition won’t expand its 82 billion euro ($107 billion) stimulus agreed under two separate programs, Merkel told reporters in Berlin today after a meeting with business leaders and economists.

“We shouldn’t talk about a third stimulus package,” Merkel said. “Instead we’ll let current measures take effect.”

She is right. Many economists believe that if FDR would have spent a little less, the U.S. economy would have recovered quicker back in the 1930s than it did. Merkel should learn from this and give the Germany economy time to pull itself up by its bootstraps.

Furthermore, the only way to revive an economy is to increase demand from consumers and businesses. You do this by decreasing taxes and getting rid of the many administration obstacles faced by entrepreneurs.

Let’s hope Merkel will stick to her word.