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The wacky economics of Germany's parallel universe - FT.com - Wolfgang Münchau
German economists roughly fall into two groups: those that have not read Keynes, and those that have not understood Keynes. To describe the economic mainstream in Germany as conservative misses the point. There are some overlaps with the various neoclassical or neoconservative schools in the US and elsewhere. But as compelling as a comparison between the German mainstream and the Tea Party may appear, it does not survive scrutiny. German orthodoxy straddles the centre-left and the centre-right. The only party with some Keynesian leanings are the former communists.

A good example of orthodox dogma was last week's annual report of the Council of Economic Experts, an official body that advises the government. They did not criticise a lack of investment, excessive current account surpluses or overzealous fiscal rectitude. Instead they criticised the minimum wage and some minor relaxation to the retirement age. In other words: they want the government of Angela Merkel, chancellor, to be even tougher.

by Bernard (bernard) on Sat Nov 22nd, 2014 at 05:14:23 PM EST
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