European Tribune - Comments - Mercantilism Rules, OK?

Mercantilism Rules, OK? | 64 comments (64 topical, 0 editorial, 0 hidden)

However, why did other countries always have to devalue against the DM?

Because German monetary policy has a deflationary bias, and because German industrial policy is export-driven.

The brainless should not be in banking -- Willem Buiter

by Migeru (migeru at eurotrib dot com) on Thu Mar 18th, 2010 at 11:59:52 AM EST
[ Parent ]

Re: yeah, but... (none / 0)

what German industrial policy ?

by crankykarsten (cranky (where?) gmx dot organisation) on Thu Mar 18th, 2010 at 12:09:21 PM EST
[ Parent ]

Re: yeah, but... (4.00 / 2)

Increasing competitiveness of German industries is hardly that novel a policy goal.
Add to that pressure on the low-wage sector and VAT increases that both decrease domestic purchasing power and of course imports and you end up with unsustainable large trade surpluses.

Wait this is important. Someone is wrong on the Internet.

by generic on Thu Mar 18th, 2010 at 12:47:24 PM EST
[ Parent ]

Mercantilism Rules, OK? | 64 comments (64 topical, 0 editorial, 0 hidden)

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