Germany: Selected Issues

Author: International Monetary Fund

Volume/Issue: Volume 2006 Issue 436

Publication date: December 2006

ISBN: 9781451810523

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Topics covered in this book

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Banks and Banking , Labor , Economics- Macroeconomics , Public Finance , Taxation - General , ISCR , CR , firm , Germany , tax treatment , tax rate , service sector , cost of capital , market failure , LB Berlin , export sector , growth effect , banking system , LB Hessen-Thüringen , private sector , Corporate income tax , Personal income tax , Commercial banks , Global , Europe , Eastern Europe

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Summary

For more than a decade, growth in Germany has been subdued and uneven. This paper introduces the stylized facts pertaining to the strength in exports, the weakness in domestic demand, and the surge in the current account. It discusses the adjustment undertaken in the private sector and its impact on exports and domestic demand, followed by fiscal and monetary policies and their macroeconomic impact. Finally, structural impediments accelerating capital exports and the rising current account surplus are outlined.