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Another question is whether it can really be called a recovery. It is an improvement on the bottom of the crisis, but is Germany about to redefine 7% unemployment as "The new normal" full employment?

European Tribune - Comments - European Salon de News, Discussion et Klatsch - January 19

The German federal Government raised its growth forecast for te current year from 1.8% to 2.3%. At the presentation of the yearly economic report the economy minister Rainer Brüderle (FDP) said Germany has come out of the crisis best among European countries, with "sensational figures". "We're going forth in seven-league boots, while the others trot behind us in single file".

Interesting German cognate here, "goose step"...

Anyway, "sensational figures" include: exports down 6.5%; disposable income up 3.4%; unemployment down from 7.7% to 7%, below 3 million; deficit forecast of 2.5% below the GSP's 3% threshold.

And if this modest situation is unsustainable, what would be sustainable?

Keynesianism is intellectually hard, as evidenced by the inability of many trained economists to get it - Paul Krugman
by Migeru (migeru at eurotrib dot com) on Tue Jan 25th, 2011 at 04:52:53 AM EST

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