Today’s report that the German economy managed to expand by a mere 0.1 percent in the third quarter of the year has to heighten fears of a renewed European sovereign debt crisis sometime next year. Since a highly indebted European economic periphery needs a vibrant German economy to revitalize overall European economic growth and to prevent Europe from succumbing to outright price deflation. Sadly, German policymakers are showing little sign of reacting anytime soon to a stagnating German economy by a shift in their macroeconomic policy stance. Instead, they are sticking to the mantra of needing to balance the German …read more
Source: American Enterprise Institute for Public Policy Research