Publication

This brief examines the reasons for Germany's economic success during the last decade and explains why, nevertheless, it should not be used as a blueprint for Europe. The author argues that Germany’s strength comes from nominal wage restraint and an emphasis on education and research and development - a formula that would harm other European economies if it was applied more widely. He concludes that European leaders should carefully examine which of the elements of German reforms could actually increase productivity, output, and employment without detrimentally effecting long-term growth.