Germany

Germany Considers Relaxing Fiscal Orthodoxy

Banca March | German Finance Minister Olaf Scholz is considering temporarily lifting the suspension of the country’s debt limit in what would be a major change in the fiscal policy of Europe’s leading econom.


Germany, today, is dependent on China

Germany, Today, Is Dependent On China

The world has changed a lot because China has changed a lot. China’s share of global GDP has risen from a negligible 2% in 1990 to 15.9%. Meanwhile, the other powers have fallen in that period: Japan, from 14 to 5.8%; Europe, from 35% to 21.9%; and the USA, from 27% to 23.9%, according to Weltbank data.  So hundreds of thousands of jobs in Germany are now dependent on China. And all over the world, because China today accounts for 1/3 of world growth.


Germany, today, is dependent on China

Germany Cycle: Stabilisation At Low Levels Provides Little Comfort

Gilles Moëc (Axa Investments Manager)| Those who like to see their glass half full probably took comfort in the fact that in Germany the manufacturing Purchasing Managers Index rebounded by 0.2 pp in October relative to September, but this was again short of expectations and the absolute level remains very concerning.





Peter Bofinger

“Germany benefits from the euro, but acts as if it doesn’t exist

“In principal, the euro is a good idea. The aim is to create a big economic space without any monetary barriers, like the US. But a common space implies that member states are prepared to take each other into consideration as far as their economic, financial and wage policies are concerned,” says Peter Bofinger, one of the five ‘wise men’ who make up the German Council of Economic Experts.



Germany’s Drag on Europe

I can tell you that the most eminent economists in Spain have continued to be wrong-footed since before the crisis. They are still clamouring for debt reduction, for a return to austerity, when what is slowly killing Europe is precisely that, the austerity spreading from Germany.


German business expectations

GDP Deflators Show Germany A Relative Loser, Long May It Continue

James Alexander via Historinhas | While still waiting for the 1Q16 official Eurostat NGDP figure for the Euro Area of 19 countries it has been interesting to have a look at the implied deflators for the currency bloc and its constituents. (Ireland, Slovakia, Cyprus and Luxemburg are all hopelessly late delivering GDP figures, and the first two don’t even seem to do it to Eurostat standards for calendar-adjusted data.)