Springford, J. and Tilford, S., (2013), “Why Germany’s trade surplus is bad for the eurozone”, Centre for European Reform Bulletin, Issue 93, December 2013/ January 2014.
In late October, the US singled out Germany as a threat to the global economy. The Treasury issued a report saying that Germany’s current account surplus – now around 7 per cent of GDP – imposes “a deflationary bias for the eurozone as well as for the world economy.” Two weeks later, the European Commission promised to review Germany’s surplus under its ‘excessive imbalance procedure’. Many German politicians and business people quickly dismissed these interventions, claiming that the surplus is mostly with the rest of the world, not the eurozone, and so does not affect the periphery; that the surplus reflects the country’s competitiveness; and that deflation in the eurozone periphery is positive as it indicates that these economies (and hence the currency union as a whole) are becoming more competitive. They are wrong on all three counts.
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Σχετικές Αναρτήσεις
- Cohen-Setton, J., (2013), “Blogs review: The deflationary bias of Germany’s current account”,Bruegel, 06 Νοεμβρίου.
- Coppola, F., (2013), “The ECB rate cut was driven by the needs of Germany, not the needs of the Eurozone”, LSE European Politics and Policy Blog, 19 Νοεμβρίου.
- Marzinotto, B., (2013), “The euro complements Northern European economies more effectively than those in Southern Europe”, Europeans Politics and Policy Blog, 02 Οκτώβριος.