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Wednesday, July 3, 2013

Francesco Saraceno : The German Model is not for export (!)

He has some pertinent remarks after a must read Policy Brief by Sebastian Dullien : A German Model for Europe?

the reforms of 2003-2005, that exacerbated the dualism of labour markets and helped create a serious problem of working poors, that will eventually worsen the dynamism of the German economy.

Wage restraint and austerity only worked because applied in one country.
the current account surplus should not be seen as a mark of success. Rather, it was a precondition for it
the major mark of German success: an institutional system (firms, government, unions) that, as a whole, has designed and implemented a successful industrial policy capable of anticipating and taking advantage of future trends in the global economy

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