Archives For July 11, 2017

Pay restraint put Germany back on track but at a cost. It has left the economy more unbalanced than ever. Exports are super-competitive. In last year’s annual health-check, the IMF said Germany’s real effective exchange rate was undervalued by 10-20%. Consumer spending, meanwhile, remains depressed. Despite abundant jobs growth, the share of GDP going to households has fallen from 65% in the early 1990s to 60% or below, to the benefit of corporate profits (see chart 4). The rate of household saving, however, has not changed much: it is currently 9.8%, exactly in line with its 20-year average.

https://www.economist.com/news/briefing/21724801-germany-admired-its-stability-derided-persistent-trade-surpluses-good-and-bad

Advertisements

http://madefrom.com/history/antiquity/worst-roman-emperors/

GRANT, O Lord, we beseech thee, that the course of this world may be so peaceably ordered by thy governance, that thy Church may joyfully serve thee in all godly quietness; through Jesus Christ our Lord. Amen.