The radical change in Germany’s economic model since the crisis – Natixis. com

English: The Fall of the Berlin Wall, 1989. Th...

English: The Fall of the Berlin Wall, 1989. The photo shows a part of a public photo documentation wall at Former Check Point Charlie, Berlin. The photo documentation is permanently placed in the public. Türkçe: Berlin Duvarı, 1989 sonbaharı (Photo credit: Wikipedia)

This is an excellent, MUST READ, research article published by Natixis.com. Check it out!

To read the PDF article open this link

Let me cite the conclusion from the article:

Germany has switched from a pre-crisis model where growth was driven by exports and investment, after the polices aimed at boosting supply had provided the expected positive effects, to a post-crisis model where growth is driven by consumption and where real wages increase faster than labour productivity

Personally, I am amazed by the article. Most commentators, including this blog, are typically looking to Germany to reflate her economy faster to kick-start growth in Europe.

Any thoughts?

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The wheels are coming off the whole of southern Europe – Ambrose Evens-Pritchard -Telegraph

One of a number of posters created by the Econ...

One of a number of posters created by the Economic Cooperation Administration to promote the Marshall Plan in Europe (Photo credit: Wikipedia)

 

English: Southern Europe.

English: Southern Europe. (Photo credit: Wikipedia)

 

This is a powerful article from Ambrose Evens-Pritchard, in his Telegraph blog. It’s STRONGLY RECOMMENDED READING, in my view. Check it out!

 

via The wheels are coming off the whole of southern Europe – Telegraph.

 

Regular readers of this blog will know that I have been highly critical of the excessive austerity medicine prescribed to Southern Europe; this blog has argued in favour of massive investment, a traditional Keynesian remedy to stimulate demand – a type of Marshall Plan.  Sadly, the austerians is Berlin and Brussels still prevail but as Ambrose Evens-Pritchard concluded their policies are not sustainable.

 

Any thoughts?

 

 

 

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