Economics and politics - comment and analysis

“Let nations go bankrupt!”

20. July 2018 I Europe

In a guest article for the Frankfurter Allgemeine Zeitung, fourteen German and French economists commented on proposed measures towards a deepening of European Monetary Union – which had been decided on a few weeks earlier in Meseberg at the Franco-German summit. …

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Final countdown: Change the EU now – or never

3. July 2018 I Europe

French Finance Minister Bruno Le Maire gave the Financial Times an interview in which he stated clearly that, given the gap in competitiveness between Germany and the other European Monetary Union (EMU) nations, it is “impossible to continue” and that for France the introduction of the euro zone budget is “non-negotiable”. …

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Current account surpluses, jobs, and statistics

27. June 2018 I General

To understand the current trade conflict between Europe and the USA it is important to reassess the political situation of German foreign trade. What’s happening now is nothing new. I vividly remember Larry Summers, then US treasury secretary, telling me at a G7 meeting some twenty years ago that since the early 1980s the American administration had actually given up hope having serious discussions with a German administration on international issues such as balancing trade surpluses or stimulating the global economy. …

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