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How Germany is able to run the world’s second largest export economy

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Re: How Germany is able to run the world’s second largest export economy

#11

Post by mandevil »

billfruit wrote: post #2

Very informative. Does this imply that Brexit is the rational choice for the UK?

Britain already used its own currency, so they didn't have the same sort of 'Greece and Spain suffering to subsidize German exports' effect going on. So I don't think this particular issue will be different from before Brexit.

ETA: It will matter if the City continues to dominate European financial transactions, because it is the tremendous amount of money that goes to the City which keeps the Pound priced above the levels that are good for manufacturing exports. If the multinationals all move to Hamburg or wherever, the Pound (probably) loses in value and British manufactured goods become more competitive on the global market. In theory. Possibly. Who knows?

Re: How Germany is able to run the world’s second largest export economy

#13

Post by heisenbit »

WA wrote: post #8
moggi wrote: post #5

Interesting choice to use 1993 as the start for the comparison of Germany's trade surplus: https://tradingeconomics.com/germany/balance-of-trade

I think it's right in the text why 1993 was chosen: > "Indeed, when the Single Market was adopted (1993), ..."

There were two major events that make the starting point a lot lower: Recession shortly before and German reunification with its significant economic distortions.

Re: How Germany is able to run the world’s second largest export economy

#15

Post by Ididntdothis »

moggi wrote: post #5

Interesting choice to use 1993 as the start for the comparison of Germany's trade surplus: https://tradingeconomics.com/germany/balance-of-trade

That’s why it’s easy to deceive by starting charts a certain date. When you look at the 1980s there was also a big increase. The y axis is linear so the newer increases look much more dramatic. When you look at the chart from 1950 you see a long term upwards trend with some setbacks.

Re: How Germany is able to run the world’s second largest export economy

#16

Post by pretendscholar »

heisenbit wrote: post #10
billfruit wrote: post #2

Very informative. Does this imply that Brexit is the rational choice for the UK?

Maybe, if it is rational to loose ones status as Europe‘s financial hub which was one of the key drivers in the past for the high pound exchange value.

There are winners and losers to having a strong currency. It isn't inherently a bad thing to make the currency less valuable.

Re: How Germany is able to run the world’s second largest export economy

#17

Post by JanSt »

„ France and the UK were opposed to German reunification, and attempted to influence the Soviet Union to stop it.[8] However, in late 1989 France extracted German commitment to the Monetary Union in return for support for German reunification.[9]“

https://en.m.wikipedia.org/wiki/History_of_the_euro

Re: How Germany is able to run the world’s second largest export economy

#19

Post by drocer88 »

ginko wrote: post #3

I wonder how that plot would look like if they separated individual US states and also considered trade between them. I'd guess the big three (California, Texas, New York) would dominate quite a bit there as well.

New York, big three? Florida passed New York in population in 2014: https://www.orlandosentinel.com/news/breaking-news/os-florid... . Census figures released Tuesday show Florida passed New York as the nation's third largest state with an estimated population of 19.9 million. New York, now fourth, has 19.7 million.
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