- While Germany has put itself on the line for rescue packages of fellow eurozone countries, and it emphasizes the importance of structural reforms, it’s role isn’t benign.
- By undercutting wage growth in the previous decade, leading to an enormous current account surplus, and failing to reflate it makes life for the peripheral countries unbearably hard.
- The upshot is that we think it is quite realistic to expect the eurozone to succumb to its internal contradictions and different policy preferences.
Is Germany Wrecking the Eurozone?
January 14th, 2015 · No Comments