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The Pressures on Germany to Help Save the Euro

In: Dollars, Euros, and Debt

Author

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  • Vito Tanzi

Abstract

There have been suggestions that Germany should pursue more expansionary fiscal and more relaxed labor policies than other EMU countries. Various economists, including Martin Wolf, a commentator with the Financial Times, Jean Pisani-Ferry, an economist at Bruegel (a think tank in Brussels), and some others, have been proponents of Germany’s expansionary policies (see also the recent book in Italian by Mario Seminerio, 2012). In their views, by reducing the competitive advantage that Germany had acquired in recent years over some of the other EMU countries (because of the prudent policies that it had followed), expansionary policies followed by Germany, would improve the economic conditions for the whole European Monetary Union. The belief in the power of expansionary policies, even of indirect ones is, in part, behind these proposals.

Suggested Citation

  • Vito Tanzi, 2013. "The Pressures on Germany to Help Save the Euro," Palgrave Macmillan Books, in: Dollars, Euros, and Debt, chapter 4, pages 37-43, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-34647-6_4
    DOI: 10.1057/9781137346476_4
    as

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