Test of the German Resilience

From its early post-war catch-up phase, Germany’s formidable export engine has been its consistent driver of growth. But Germany has almost equally consistently run current account surpluses. Exports have powered the dyn
From its early post-war catch-up phase, Germany’s formidable export engine has been its consistent driver of growth. But Germany has almost equally consistently run current account surpluses. Exports have powered the dynamic phases and helped emerge from stagnation. Volatile external demand, in turn, has elevated German GDP growth volatility by advanced countries’ standards, keeping domestic consumption growth at surprisingly low levels. As a consequence, despite the size of its economy and important labor market reforms, Germany’s ability to act as global locomotive has been limited. With increasing competition in its traditional areas of manufacturing, a more domestically-driven growth dynamic, especially in the production and delivery of services, will be good for Germany and for the global economy. Absent such an effort, German growth will remain constrained, and Germany will play only a modest role in spurring growth elsewhere. 
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Metadaten
Author:Fabian Bornhorst, Ashoka Mody
URN:urn:nbn:de:hebis:30:3-268775
Series (Serial Number):CFS working paper series (2012, 14)
Publisher:CFS
Place of publication:Frankfurt, Main
Document Type:Working Paper
Language:English
Year of first Publication:2012
Publishing Institution:Univ.-Bibliothek Frankfurt am Main
Release Date:2012/12/04
Tag:Current Account; Economic Performance; Economic Recovery; Economic Reforms; Germany; Labor Market; Productivity; Spillovers
Institutes:Center for Financial Studies (CFS)
Dewey Decimal Classification:330 Wirtschaft
JEL-Classification:E20 General
E65 Studies of Particular Policy Episodes
N14 Europe: 1913–
O52 Europe
P52 Comparative Studies of Particular Economies
Sammlungen:Universitätspublikationen
Licence (German):License Logo Veröffentlichungsvertrag für Publikationen

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