Living With a Single Monetary Policy Germany. Living With a Single Monetary Policy The Problem: Economic Inequality Effect on Germany Potential Solutions.

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Presentation transcript:

Living With a Single Monetary Policy Germany

Living With a Single Monetary Policy The Problem: Economic Inequality Effect on Germany Potential Solutions Policy Recommendation

The Problem: Inequality

Source: The European Commission The Problem: Inequality Eurozone Average: 2.4% Germany: 2.2% Germany: 83.2% Eurozone Average: 61.5% Comparison of Government Debt, 2010 Government Deficit Averages 2000 to 2010

Source: The European Commission Interest on Sovereign Bonds, The Problem: Inequality

Source: The European Commission Eurozone Average: 10.7% Germany: 5.8% % Germany: 2.5% Eurozone Average: 2.7% Yearly Inflation Variation, 2011 Current Unemployment Variation, November 2011 The Problem: Inequality

Average Net Trade Variation, 1999 to 2010 Germany: 79.8 Billion Source: The European Commission In Billions Eurozone Average: 4.7 Billion Eurozone Average for 2011: 1.4% Germany for 2011: 3.0% The Problem: Inequality Gross Domestic Production Trends

The Effect on Germany

Greece’s debt directly owed to the German Government: 15 billion Euros Loans to Countries in Crisis Source: Bank For International Settlements Millions USD Private Exposure Government Exposure

Source: Statistisches Bundesamt Deutschland; CIA.gov Total trade within the Eurozone: 41% Percent of Workforce in Manufacturing: 29.7% German Trade in the Eurozone The Effect on Germany

Private German Exposure to Eurozone Source: Bank For International Settlements The Effect on Germany

Potential Solutions

Financial Sector Fiscal Budgets Private Consumption Pushing for Stimulus Potential Solutions

Costly Unpopular May only have short-term effects Drawbacks Potential Solutions

Pushing for Austerity Measures Methods Reducing Government Expenditure Raising Government Funds Enforcement Changing Management Political Agreements Potential Solutions

Drawbacks Risks deeper recession Unpopular Slows growth Potential Solutions

Policy Recommendation

Europe 2020 Education Green Energy Research and Development Policy Recommendation

Implementation Unemployment: 12%+ Government Debt: 90%+ of GDP Ireland, Portugal, Greece Policy Recommendation

Drawbacks Uneven financial support Lender Insecurity Policy Recommendation

“We will only be able to strengthen our common currency if we co-ordinate our policies more closely…” –Angela Merkel

Prevention: Standardization Stability and Growth Pact Annual financial inspection Transparency Policy Recommendation

Conclusion Inequality German Connection Stabilization Prevention Implementation

References TradingEconomics.com - Economic Data for 196 Countries. (n.d.). TradingEconomics.com - Economic Data for 196 Countries. Retrieved March 19, 2012, from The Guardian. (n.d.). Latest US news, world news, sport and comment from the Guardian | guardiannews.com | The Guardian. Retrieved March 19, 2012, from BBC - Homepage. (n.d.). BBC - Homepage. Retrieved March 19, 2012, from Deutsche Bundesbank - Statistics. (n.d.). Deutsche Bundesbank - Startseite. Retrieved March 19, 2012, from EUobserver.com / Headline News. (n.d.). EUobserver.com / Headline News. Retrieved March 19, 2012, from EuroMemo Group - European Economists for an Alternative Economic Policy in Europe. (n.d.). EuroMemo Group - European Economists for an Alternative Economic Policy in Europe. Retrieved March 19, 2012, from Eurostat. (n.d.). Eurostat. Retrieved March 12, 2019, from epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/ Institution. (n.d.). Bank for International Settlements. Bank for International Settlements. Retrieved March 19, 2012, from Public Opinion Analysis. (n.d.). The European Commision. Retrieved March 12, 2019, from ec.europa.eu/public_opinion/

References Continued The Financial Times. (n.d.). World business, finance, and political news from the Financial Times - FT.com. World business, finance, and political news from the Financial Times - FT.com. Retrieved March 19, 2012, from SPIEGEL ONLINE - Nachrichten. (n.d.). SPIEGEL ONLINE - Nachrichten. Retrieved March 19, 2012, from Statistical Offices of the L√ ｧ nder and the Federal Statistical Office. (n.d.). Gemeinsames Datenangebot der Statistischen √ ﾑ mter des Bundes und der L√ ｧ nder. Retrieved March 19, 2012, from The European Central Bank. (n.d.). The European Central Bank. Retrieved March 12, 2019, from The European Commision. (n.d.). The European Commision. Retrieved March 12, 2019, from ec.europa.eu/index_en.htm The European Union. (n.d.). The European Union. Retrieved March 12, 2019, from Times Topics - The New York Times. (n.d.). The New York Times - Breaking News, World News & Multimedia. Retrieved March 19, 2012, from The Economist - World News, Politics, Economics, Business & Finance. The Economist - World News, Politics, Economics, Business & Finance. Retrieved March 19, 2012, from European Banking Authority - EBA - Home. European Banking Authority - EBA - Home. Retrieved March 19, 2012, from