Summary of German Rebalancing

Looking for the report?
We have the summary! Get the key insights in just 5 minutes.

German Rebalancing  summary
Start getting smarter:
or see our plans

Rating

8 Overall

8 Importance

7 Innovation

8 Style

Recommendation

Thrift is prudent, but not to excess, says economist Simon Tilford. He takes the German government to task for a robust and enduring current account surplus, arguing that excessive savings are harming growth both at home and in the euro zone. He advises Germany to adopt reforms that can raise living standards and economic productivity. Tilford writes at a level accessible to the lay reader as well as the economist, and his articulate report makes several cogent, relevant observations. getAbstract recommends it to policy makers, investors, executives and euro watchers.

In this summary, you will learn

  • Why Germany has such a large current account surplus,
  • How such a surfeit of savings harms both its economy and those of its trading partners, and
  • What the government needs to do to address this severe imbalance.
 

About the Author

Simon Tilford is deputy director of the Centre for European Reform.

 

Summary

Entrenched policies are keeping Germany from reducing its massive current account surplus, which not only curbs domestic investment and spending but leaves the euro zone in a moribund state. Its 2014 surplus, a national record of 7.5% of GDP, was the world’s biggest, at more than €200 billion. In fact...

Get the key points from this report in 10 minutes.

For you

Find the right subscription plan for you.

For your company

We help you build a culture of continuous learning.

 or log in

Comment on this summary

More on this topic

Customers who read this summary also read

More by category