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1. Germany has an old population. Germany recently added a system of subsidized retirement savings. German savings are traditionally biased towards bonds, not shares.

And you wonder why Germany would have a problem with inflation or long term zero interest rates?

2. German wages are not on average low, just growth has slowed. Germany has just decided that wages need to be less equal than in the 70ies.

by oliver on Tue May 7th, 2013 at 05:34:16 AM EST
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