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This study explores the significance of Germany's trade surplus in the Eurozone, addressing complaints of unfair advantages and advocating for more expansionary fiscal policies to balance the Euro's valuation. It delves into the implications of Germany's competitiveness and the challenges it poses to peripheral economies, suggesting shifts in wage bargaining systems. The historical context of WWI and WWII is considered alongside Germany's economic strategy within Europe, proposing a reevaluation of the Euro's role in fostering more unified nations.
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Why is Germany so Important to the Continued Use of the Euro? Group 6 Rafael Ramos Codeco Paul Yu Catherine Chien
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 vsUni-Europe. • WWI, WW2---Military • Economic Strategy
WHAT SHOULD BE CONSIDERED? • Euro, just the first step. • No visa • No border • Uni-Nation?