Internal Devaluation in Germany and the Crisis in Europe
The stabilization of the Euro-zone depends on a more sustainable reorientation of Germany's socio-economic model toward strengthening its domestic market based on massive public investment in infrastructure and social services.
Jan 21, 2020
Hello AltAusterity Readers! For your afternoon commute today we have a paper by Dr. Steffen Lehndorff from the University of Duisburg-Essen on internal devaluation in Germany and the economic crisis in Europe. Steffen suggests that Germany’s bold internal devaluation approach, based on the weakening of collective bargaining and the deregulations of “Agenda 2010,” prepared the ground for the ongoing European crisis by triggering a mutual reinforcement of unsustainable growth models, pitting a surplus core against a deficit periphery.
His paper neatly explains that the stabilization of the Euro-zone depends on a more sustainable reorientation of Germany’s socio-economic model toward strengthening its domestic market based on massive public investment in infrastructure and social services.
Read his full paper under "Case Studies" on our Research page.
If you'd like to learn more about Steffen, check out his faculty page, here: https://www.iaq.uni-due.de/en/page.php?name=lehndorff_steffen
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