We all love Mutti Merkel but
German outperformance compared to the rest of Europe - but not the world, which it lags badly - is mostly the fruit of an ‘internal devaluation’ within the closed eurozone system. This was made possible by the Hartz IV wage compression policies
Angela Merkel inherited a regime in which German industry had acquired a competitive edge of 20pc to 30pc against the Club Med bloc, which was nigh impossible for the South to reverse without going into debt deflation and making matters even worse. Ultimately this was untenable for a currency union, as became all too clear.
Ambrose Evans-Pritchard Telegraph 2 July 2021
Tyskland lyckades genomföra vad ekonomerna kallar en interndevalvering.
Hur kunde då Tyskland lyckas med det som i dag framstår som omöjligt för länderna i Sydeuropa?
The Hartz IV reforms – so widely praised as the foundation of German competitiveness, and now being foisted on southern Europe – did not raise productivity
Ambrose Evans-Pritchard 8 Oct 2014
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