Abstract
Since the mid-1990s Germany’s economic performance with respect to GDP growth, the development of unemployment and also the budget deficit has been considerably worse than the Euro area average (Hein and Truger 2005a, 2005b). However, this relative economic weakness might have gone almost unnoticed if it had not been for the slowdown of the world economy after 2000. By the end of 2002 it had become obvious that Germany had been hit much harder by this slowdown and did not manage to recover. For the first time unemployment rose above the Euro area average and the budget deficit exceeded the 3 per cent limit of the European Stability and Growth Pact (SGP).
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© 2007 Eckhard Hein and Achim Truger
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Hein, E., Truger, A. (2007). Germany’s Post-2000 Stagnation in the European Context — a Lesson in Macroeconomic Mismanagement. In: Arestis, P., Hein, E., Le Heron, E. (eds) Aspects of Modern Monetary and Macroeconomic Policies. Palgrave Macmillan, London. https://doi.org/10.1057/9780230627345_12
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DOI: https://doi.org/10.1057/9780230627345_12
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