Germany is quietly rebalancing its economy – but this will not fix the Eurozone’s flaws

A common criticism of Germany in the post-crisis period had been that its economy was unbalanced, with the country’s reluctance to increase public spending or reduce its large current account surplus being cited as problems for other Eurozone economies. Donato Di Carlo argued that this narrative entirely overlooked the extent to which the German economy had already gone through a process of rebalancing in recent years. He suggested that the country cannot and should not be seen as a ‘fixer of last resort’ for the single currency.

See also a response article Germany’s non-rebalancing of its mercantilist model by Patrick Kaczmarczyk in November 2018.

LSE European Institute: EuroppBlog, 09.11.18: Germany’s non-rebalancing of its mercantilist model http://blogs.lse.ac.uk/europpblog/2018/11/09/germanys-non-rebalancing-of-its-mercantilist-model/

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