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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 on theme: "Living With a Single Monetary Policy Germany. Living With a Single Monetary Policy The Problem: Economic Inequality Effect on Germany Potential Solutions."— Presentation transcript:

1 Living With a Single Monetary Policy Germany

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

3 The Problem: Inequality

4 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

5 Source: The European Commission Interest on Sovereign Bonds, 1995-2011 The Problem: Inequality

6 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

7 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

8 The Effect on Germany

9 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

10 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

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

12 Potential Solutions

13 Financial Sector Fiscal Budgets Private Consumption Pushing for Stimulus Potential Solutions

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

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

16 Drawbacks Risks deeper recession Unpopular Slows growth Potential Solutions

17 Policy Recommendation

18 Europe 2020 Education Green Energy Research and Development Policy Recommendation

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

20 Drawbacks Uneven financial support Lender Insecurity Policy Recommendation

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

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

23 Conclusion Inequality German Connection Stabilization Prevention Implementation

24 References TradingEconomics.com - Economic Data for 196 Countries. (n.d.). TradingEconomics.com - Economic Data for 196 Countries. Retrieved March 19, 2012, from http://www.tradingeconomics.com/ The Guardian. (n.d.). Latest US news, world news, sport and comment from the Guardian | guardiannews.com | The Guardian. Retrieved March 19, 2012, from http://www.guardian.co.uk/business/ BBC - Homepage. (n.d.). BBC - Homepage. Retrieved March 19, 2012, from http://www.bbc.co.uk/ Deutsche Bundesbank - Statistics. (n.d.). Deutsche Bundesbank - Startseite. Retrieved March 19, 2012, from http://www.bundesbank.de/statistik/statistik.en.php EUobserver.com / Headline News. (n.d.). EUobserver.com / Headline News. Retrieved March 19, 2012, from http://euobserver.com 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 http://www.euromemo.eu/ 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 http://www.bis.org/ Public Opinion Analysis. (n.d.). The European Commision. Retrieved March 12, 2019, from ec.europa.eu/public_opinion/

25 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 http://www.ft.com/ SPIEGEL ONLINE - Nachrichten. (n.d.). SPIEGEL ONLINE - Nachrichten. Retrieved March 19, 2012, from http://www.spiegel.de/ 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 http://www.statistik-portal.de/statistik-portal/en/ The European Central Bank. (n.d.). The European Central Bank. Retrieved March 12, 2019, from www.ecb.int/ 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 www.eurunion.org/eu/ Times Topics - The New York Times. (n.d.). The New York Times - Breaking News, World News & Multimedia. Retrieved March 19, 2012, from http://www.nytimes.com/pages/topics/ The Economist - World News, Politics, Economics, Business & Finance. The Economist - World News, Politics, Economics, Business & Finance. Retrieved March 19, 2012, from http://www.economist.com/ European Banking Authority - EBA - Home. European Banking Authority - EBA - Home. Retrieved March 19, 2012, from http://www.eba.europa.eu/

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