July 25, 2009
German Economic Policy after the Election: No help from Germany towards global economic rebalancing
by Sebastian Dullien
In a new publication for the American Institute of Contemporary German Studies (AICGS) at the Johns Hopkins University in Washington, D.C., I argue that no matter who is going to win the election in Germany in September, Germany will continue to be an obstacle to the reduction of global imbalances. The new constitutional rule on the limits on government borrowing as well as the frame of mind of the main policy makers means that the world will not see a sustainable revival of domestic demand growth in Germany, but a continuation of the Mercantilist strategy of the past decade. You can download the full analysis from the AIGS's website here.