Germany’s economy has shown a dramatic turn-round. It was the sick man of Europe when the euro was launched in 1999 and today its exports are at a record high. But Germany’s ‘business model’ has won criticism rather than praise. Is this criticism valid or is the inflexibility of the eurozone the cause of the problem?

<i>Germany’s ‘business model’ has come under attack from Washington, Paris and Brussels as its exports reach record highs. Germany is being held responsible for imbalances in the world economy and the eurozone. But are the allegations justified? Has Germany really been profiting unfairly from the common currency? What are the reasons for Germany’s current account su...

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Dr. Michael Wohlgemuth
If, in addition, Germany were to follow the advice from the IMF or the European Commission and started reflating quickly, with wages and prices going up, significant problems could be created for the ECB and its middle of the road, one-size-fits-all monetary policy
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