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G ERMANY ’ S FINANCIAL MODEL AND INVESTMENT BEHAVIOR
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1. Fourth largest economy worldwide 2. The biggest one in Europe 3. Producing around 25% of the EU GDP 4. Well developed manufacturing and investment sectors.
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1. Lower growth relative to other European countries in real terms. 2. The increase in real wages is behind many in Europe. 3. Decrease in the domestic investment from 20% to 17% of the GDP and is lagging compared to euro average. 4. The potential risks and consequences of the already started quantitative easing in the Eurozone.
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1. Foreign investment is developing. 2. Inventory investment is going up. 3. Possible benefits from the QE.
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CONCLUSION: GERMANY NOW > GERMANY IN THE FUTURE
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SOURCES: Bach, S., Baldi, G., Bernoth, K., Blazejczak,J., Bremer, B. Diekmann, J., Eder, D., Farkas, B., Fichtner, F., Fratzscher, M. and Others. “Germany must invest more in its future.” DIW Economic Bulletin, 3 (2013): 3-4. WEB. 02 Dec. 2015 Berger, Matthew. "German Corporate Convergence To A Market Based System." International Community Law Review 9.2 (2007): 209-232. Academic Search Complete. WEB. 2 Dec. 2015. Country Watch, “Germany Review”. Country Watch, Inc.. (2015). WEB. 02 Dec.2015. Available at: http://www.countrywatch.com/Intelligence/CountryReviews?CountryId=65 Fratzscher. M, “Investment, not the surplus, is Germany’s big problem.” Financial Times. (2013). WEB. 02 Dec 2015. Data.worldbank.org. “Gross fixed capital formation (% of GDP) Germany.” Worldbank. (2015). Web. 02 Dec. 2015. Available at: http://data.worldbank.org/indicator/NE.GDI.FTOT.ZS/countries/DE?display=graphhttp://data.worldbank.org/indicator/NE.GDI.FTOT.ZS/countries/DE?display=graph Jost, T. “Inward FDI in Germany and its policy context.” Vale Columbia Center on Sustainable International Investment. (2012). WEB. 02 Dec. 2015. Miles, A. “Doing business and investigating in Germany.” PricewaterhouseCoopers. Jan (2014). 10-20. Print. The Economist. “Under the matress.” The Economist. (2014). WEB. 02 Dec. 2015. Trading Economics. “Germany Foreign Direct Investment.” Trading Economics. (2014). WEB. 02 Dec. 2015. Available at: http://www.tradingeconomics.com/germany/foreign-direct-investmenthttp://www.tradingeconomics.com/germany/foreign-direct-investment Ewing, J. “Eurozone takes on quantitative easing, and its risks.” The New York Times. (2015). WEB. 02 Dec. 2015. Wortsall, T. “The German Arguments Against European QE Are Correct. Thus There Must Be More European QE.” The Forbes Magazine. (2014). WEB. 02.12.2015. Eckert, D. “Germany shouldn’t be afraid of QE.” The Guardian. (2015). WEB. 03.12.2015. Salam, R. “The overrated German Economic Model.” Nation Review Online. (2014). WEB. 02 Dec. 2015. The Economist “QE phobia. Many Germans still feel uneasy with the thought of unconventional monetary policy.” The Economist. (Jan 22. 2015). WEB. 10.12.2015. Warner, J. “Is QE a defeat for Germany, or a strategic retreat?” The Telegraph. (Jan 24. 2015). WEB. 10.12.2015. Atkins, R. “German bonds measure success of Eurozone QE.” The Financial Times. (Apr 30. 2015). WEB. 10.12.2015
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