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The Politics of Germany’s External Surplus

Fuest, Clemens, (2017), “The Politics of Germany’s External Surplus”, Project Syndicate, 17 Ιουλίου

The debate about global macroeconomic imbalances is increasingly focusing on Germany’s current-account surplus and economic policy. Despite the vitality of the German economic engine, and the role it plays in fueling growth and maintaining stability in the eurozone, criticism of the country’s massive external surplus is mounting. As the Economist put it recently, Germany “saves too much and spends too little,” making it “an awkward defender of free trade.”

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