The reason that the ECB isn’t doing more to stimulate growth in Europe, and the reason that leaders are moving very slowly (if at all) to moderate the destructive austerity policies is that Germany has things so good.It’d be one thing if Germany were feeling some pain, but all indications continue to suggest that they’re in the sweetspot.
German unemployment is ultra-low. Its exports are picking pack up (mostly to the rest of the world). And inflation, the thing that Germans seem to hate the most, is on the decline.
CPI has now hit its lowest level in 2 years.
The annual inflation rate in Germany, calculated using a harmonized European Union method, dropped to 1.8 per cent from 1.9 per cent in January, the Federal Statistics Office in Wiesbaden said today. The outcome was in line with the median estimate of 21 economists in a Bloomberg News survey.
Every indicator is going the right way for Germany. So things are slow to change.
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