Group 6 Rafael Ramos Codeco Paul Yu Catherine Chien Why is Germany so Important to the Continued Use of the Euro?
MAIN TOPICS Overview (EU vs Germany) Trade Surplus of Germany & Complaints German Replication Germany-Europe
OVERVIEW (EU VS GERMANY) 2013Euro AreaGermany GDP growth rate 0.1%0.4% Inflation rate 1.5%1.6% Unemployment rate 11.9%5.25%
TRADE SURPLUS OF GERMANY & COMPLAINTS Peripheral economies claims Germany should enhance domestic demand More expansionary fiscal policy Changing system of wage bargaining Germany’s unfair advantages Why is it bad for other countries? Valuation of Euro
GERMAN REPLICATION Surplus is mostly with the rest of the world. Surplus reflects Germany’s competitiveness. Deflation in Eurozone is positive.
GERMANY -EUROPE Germany-Europe vs Uni-Europe. WWI, WW2---Military Economic Strategy
WHAT SHOULD BE CONSIDERED? Euro, just the first step. No visa No border Uni-Nation?