In April 2013, Deutsche
Welle reported that the German central bank had “analyzed possible effect a
domestic growth package could have on southern European economies. ‘By and large,
it would have no impact,’ claimed Clemens Fuest, president of the
Mannheim-based Center for European Economic Research. ‘We won't be able to
fight recession in southern Europe with domestic growth incentives.’ He added
that southern European states do not just have a demand problem. ‘Prices there
have got out of hand,’ he said. ‘Wages and labor costs have spiraled out of
control, and must be brought down again. If you were to implement a growth
scheme, you'd only slow down the necessary adjustments.’”
The full essay is at Essays on the E.U. Political Economy: Federalism and the Debt Crisis, available at Amazon.
The full essay is at Essays on the E.U. Political Economy: Federalism and the Debt Crisis, available at Amazon.
