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Germany’s misunderstood trade surplus

  • 2017-03-22
  • Marcel Fratzscher
Now that Germany’s current-account surplus has reached a record 270 billion Euros ($285 billion), or close to 8.7 per cent of GDP, the ongoing debate about its economic model has intensified. Eurozone politicians and Donald Trump’s administration in the United States are each blaming the other for the economic imbalance; and all are blaming the euro. Trump’s administration, for its part, has attacked Germany for exporting too much, and accused it of manipulating the euro. In fact, Germany’s trade surplus has little to do with the euro; which has become a con...
 
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