Pietro Reichlin's picture
Affiliation: 
Università LUISS G. Carli
Credentials: 
Professor of Economics

Voting history

German current account surpluses

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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:
Agree
Confidence level:
Confident
Comment:
Some caveats: part of the surplus is due to exports to extra-European countries and these benefit some EU peripheral economies that are exporting intermediate inputs and parts to Germany. I also agree that the excess saving in Germany is a consequence of ageing population and that boosting aggregate demand in Germany may not be sufficient to generate larger imports from peripheral Europe (as some of the peripheral EU countries suffer from lack of competitiveness). Overall, I agree with the statement but I see no easy way out.

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