Fabio Canova's picture
Affiliation: 
BI Norwegian School of Management
Credentials: 
Professor of Economics

Voting history

German current account surpluses

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Question 2: Do you agree that the German government should increase public spending given its persistently large current account surplus and given that it is part of the Eurozone?

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Answer:
Neither agree nor disagree
Confidence level:
Confident
Comment:
Not clear that German public spending will drive euro area economies up - trade channel of fiscla policy transmisison is quite negligible. Spillovers were small in the past, it is hard to see how they will be become large now

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Question 1: Do you agree that German current account surpluses are a threat to the Eurozone economy?

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Answer:
Disagree
Confidence level:
Confident
Comment:
Surpluses are with the rest of the world, not so much with euro area members. However, since they come at the cost of other euro area countries loosing market shares in world markets (because of aggressive price policies of german companies), some redistribution of the gains seem reasonable.

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