Fifty years ago, there was a very special situation in the global economy: There was a major supply shock, oil prices rose, but oil continued to be consumed in almost unchanged quantities, oil producers made enormous profits, measured inflation rates in Western countries went up and central banks raised interest rates to fight inflation. …
Germany’s new coronavirus stimulus package is wide of the mark, taking little account of the impact on investment, unemployment and loss of export income.
Cross-posted from Makroskop and Brave New Europe
Translated by BRAVE NEW EUROPE
The economic stimulus package is hailed by most of the media as a big bang. …
Germany’s metal workers’ union: Making a success out of failure
By Heiner Flassbeck and Michael Paetz (1)
Germany’s metal and engineering union, IG Metall, claimed to have scored a major success last week. A 4.3 percent pay rise sounds good if you demanded 6 percent with a lot of ballyhoo. …
Incorrect GDP calculations
The difference between what a knowledgeable observer can deduce from data concerning the European economy and what the official statistics office makes of it is becoming increasingly grotesque. Last week, the Federal Statistical Office reported a growth of German GDP of 0.4 percent in the second quarter of 2016 compared to the previous quarter (see here). …
