The Paradoxes of German Economic Performance

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The European Union’s stuttering economic recovery and ongoing debt crisis have called attention to the significant economic and commercial imbalances that exist within the union. In particular, Germany has been pointed to as a model of fiscal and economic governance, both for its strong GDP growth in 2010 and 2011 after the severe contraction of 2009, and for the surprisingly favorable conditions in its labor market. German employment has expanded over the past three years to well above precrisis levels, contrasting markedly with the experience of other European countries. Whereas in 2008 Germany’s rate of registered unemployment was roughly the […]

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