Minimum wages, maximum wages and the level of economic discourse in Germany

The past few weeks have been economically challenging for economists who live in or deal with Germany. For starters, the parliament just passed a minimum wage for postal workers. Second, the country is in the grips of a national discussion of “the excesses of managerial pay”- and a significant number of politicians have argued for […]

Structural Reforms and the German Growth Recovery

I am delighted to get so much response to my first blog. I especially appreciate the comment from a reader who called for calm, rational discussion of the issue. In Germany, reforming social safety nets is hazardous business and people can get pretty upset! And especially when Wolfgang Münchau claims what I claim is nonsense, […]

Germany: Supply-side homework unfinished

After almost a decade of slump, the German economy is finally moving again. Growth this year will probably exceed 2.5%, and comes on the heels of the longest slump since the 1950s. Germany, long considered one of the “sick man of Europe,” logged less than a third of EU’s overall rate of GDP increase over […]