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Living With a Single Monetary Policy

Living With a Single Monetary Policy. Germany. Living With a Single Monetary Policy. The Problem: Economic Inequality Effect on Germany Potential Solutions Policy Recommendation. The Problem: Inequality. The Problem: Inequality. Government Deficit Averages 2000 to 2010. Eurozone Average:

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Living With a Single Monetary Policy

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  1. Living With a Single Monetary Policy Germany

  2. Living With a Single Monetary Policy • The Problem: Economic Inequality • Effect on Germany • Potential Solutions • Policy Recommendation

  3. The Problem: Inequality

  4. The Problem: Inequality Government Deficit Averages 2000 to 2010 Eurozone Average: 2.4% Germany: 2.2% Comparison of Government Debt, 2010 Eurozone Average: 61.5% Germany: 83.2% Source: The European Commission

  5. The Problem: Inequality Interest on Sovereign Bonds, 1995-2011 Source: The European Commission

  6. The Problem: Inequality Current Unemployment Variation, November 2011 Eurozone Average: 10.7% % Germany: 5.8% Yearly Inflation Variation,2011 Eurozone Average: 2.7% Germany: 2.5% Source: The European Commission

  7. The Problem: Inequality Average Net Trade Variation, 1999 to 2010 Eurozone Average: 4.7 Billion Germany: 79.8 Billion In Billions Gross Domestic Production Trends Eurozone Average for 2011: 1.4% Germany for 2011: 3.0% Source: The European Commission

  8. The Effect on Germany

  9. The Effect on Germany Loans to Countries in Crisis Private Exposure Government Exposure Greece’s debt directly owed to the German Government: 15 billion Euros Millions USD Source: Bank For International Settlements

  10. The Effect on Germany German Trade in the Eurozone Total trade within the Eurozone: 41% Percent of Workforce in Manufacturing: 29.7% Source: Statistisches Bundesamt Deutschland; CIA.gov

  11. The Effect on Germany Private German Exposure to Eurozone Source: Bank For International Settlements

  12. Potential Solutions

  13. Potential Solutions Pushing for Stimulus • Financial Sector • Fiscal Budgets • Private Consumption

  14. Potential Solutions Drawbacks • Costly • Unpopular • May only have short-term effects

  15. Potential Solutions Pushing for Austerity Measures • Methods • Reducing Government Expenditure • Raising Government Funds • Enforcement • Changing Management • Political Agreements

  16. Potential Solutions Drawbacks • Risks deeper recession • Unpopular • Slows growth

  17. Policy Recommendation

  18. Policy Recommendation Europe 2020 • Education • Green Energy • Research and Development

  19. Policy Recommendation Implementation • Unemployment: 12%+ • Government Debt: 90%+ of GDP • Ireland, Portugal, Greece

  20. Policy Recommendation Drawbacks • Uneven financial support • Lender Insecurity

  21. Policy Recommendation “We will only be able to strengthen our common currency if we co-ordinate our policies more closely…” –Angela Merkel

  22. Policy Recommendation Prevention: Standardization • Stability and Growth Pact • Annual financial inspection • Transparency

  23. Conclusion • Inequality • German Connection • Stabilization • Prevention • Implementation

  24. References • TradingEconomics.com - Economic Data for 196 Countries. (n.d.). TradingEconomics.com - Economic Data for 196 Countries. Retrieved March 19, 2012, from http://www.tradingeconomics.com/ • The Guardian . (n.d.). Latest US news, world news, sport and comment from the Guardian | guardiannews.com | The Guardian . Retrieved March 19, 2012, from http://www.guardian.co.uk/business/ • BBC - Homepage. (n.d.). BBC - Homepage. Retrieved March 19, 2012, from http://www.bbc.co.uk/ • Deutsche Bundesbank - Statistics. (n.d.). Deutsche Bundesbank - Startseite. Retrieved March 19, 2012, from http://www.bundesbank.de/statistik/statistik.en.php • EUobserver.com / Headline News. (n.d.). EUobserver.com / Headline News. Retrieved March 19, 2012, from http://euobserver.com • EuroMemo Group - European Economists for an Alternative Economic Policy in Europe . (n.d.). EuroMemo Group - European Economists for an Alternative Economic Policy in Europe . Retrieved March 19, 2012, from http://www.euromemo.eu/ • Eurostat. (n.d.). Eurostat. Retrieved March 12, 2019, from epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/ • Institution. (n.d.). Bank for International Settlements. Bank for International Settlements. Retrieved March 19, 2012, from http://www.bis.org/ • Public Opinion Analysis. (n.d.). The European Commision. Retrieved March 12, 2019, from ec.europa.eu/public_opinion/

  25. References Continued • The Financial Times. (n.d.). World business, finance, and political news from the Financial Times - FT.com. World business, finance, and political news from the Financial Times - FT.com. Retrieved March 19, 2012, from http://www.ft.com/ • SPIEGEL ONLINE - Nachrichten. (n.d.). SPIEGEL ONLINE - Nachrichten. Retrieved March 19, 2012, from http://www.spiegel.de/ • Statistical Offices of the L√ｧnder and the Federal Statistical Office. (n.d.). Gemeinsames Datenangebot der Statistischen √ﾑmter des Bundes und der L√ｧnder. Retrieved March 19, 2012, from http://www.statistik-portal.de/statistik-portal/en/ • The European Central Bank. (n.d.). The European Central Bank. Retrieved March 12, 2019, from www.ecb.int/ • The European Commision. (n.d.). The European Commision. Retrieved March 12, 2019, from ec.europa.eu/index_en.htm • The European Union. (n.d.). The European Union. Retrieved March 12, 2019, from www.eurunion.org/eu/ • Times Topics - The New York Times. (n.d.). The New York Times - Breaking News, World News & Multimedia. Retrieved March 19, 2012, from http://www.nytimes.com/pages/topics/ • The Economist - World News, Politics, Economics, Business & Finance. The Economist - World News, Politics, Economics, Business & Finance. Retrieved March 19, 2012, from http://www.economist.com/ • European Banking Authority - EBA - Home. European Banking Authority - EBA - Home. Retrieved March 19, 2012, from http://www.eba.europa.eu/

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