Adam Posen - Exorcising Ghosts of Inflation and Unification from German Economic Policy
Channel: American Academy in Berlin
Date: 2013-03-20

Much has been made of the need for a "normalization" of German foreign policy and a departure from historically-motivated, self-imposed constraints. Adam Posen argues that a similar realization is overdue in German economic policy, where exaggerated memories of hyperinflation and unification distort current public policy decisions. The need for this kind of reevaluation has become pressing due to the German government's approach to the euro crisis. While the recent performance of the German economy has been solid and the risk of a break-up of the euro zone has subsided, these deeply rooted sentiments inhibit more pro-growth approaches in Germany and its neighbors.