How Germany Did Not Profit From The Euro

by Dr. Dirk Ehnst

Often in articles on the euro zone crisis I read things like this (written by Michael Pettis):

“In the end this is Germany’s crisis to resolve, not China’s. Germany has benefited tremendously from the euro. Nearly all of its growth in the past decade can be explained by its rising trade surplus which, given monetary policy driven almost exclusively by the needs of slow-growing and consumption-repressed Germany, came at the expense of the rest of Europe.”

I think this is basically right, but on the other hand misleading. Let me point out two things.