Germany must makes adjustments too

By Brian Easton In Economy

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A decade ago, the Economic and Monetary Union (EMU) replaced 17 European currencies with the euro, locking their nominal exchange rates together. Germany decided its wage and price structure was too high. This made it more likely Germans would buy imports and that other countries wouldn’t buy German goods. Painfully the Germans slowed their wage and price rises relative to their competitors’ until they got their levels into balance; the German economy has prospered since. Other members of the EMU have not been so rigorous and are now struggling with the consequences of excessive price ...

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