Part 2: Talk with Prof. Dr. Peter Bofinger, Head of Chair for Monetary Policy and International Economics at University Würzburg, Member of the Council of German Economic Experts, called for the Commission on Global Economic Transformation (CGET) and one of the most popular economists in the German-speaking area as well as internationally.
Not long ago, Prof. Bofinger has been chosen as a member of the newly founded Commission on Global Economic Transformation (CGET) – the Commission has been set up by the Institute for New Economic Thinking (INET) and is led by the Nobel Prize laureates in economics Joseph Stiglitz and Michael Spence. The CGET focuses on developing a strategic report concerning a broad range of economic topics, from growth stagnation and climate change to the effects of technological progress on working environment. In the talk Prof. Bofinger gives more insights and tell us about his personal role in the commission.
Moreover, we focus on Germany’s economic strengths and the rapid transformation from Europeans sick man to the European power house. Not long ago, at the beginning of the millennium, there was a huge mental depression among German population and journalists. The main mistakes in the discussion of that time was that people thought that globalization would mean, that we will have less work in our economy that people have to face reduced wage in order to remain competitive globally. According to basic economic theory, the international division of labor does not make economies poorer, it makes them healthier. And this is what happened to Germany. Additionally, Germany had to overcome the economic shock of unification. One of the biggest assets of the German economic strength is its industry structure, which is characterized – almost 99 percent – by small and medium-sized – often family-owned – companies. These companies are less dependent on capital markets, highly competitive on the world-markets and are therefore less susceptible to shocks. The biggest challenge for German businesses today is the increasing lack of skilled workers.
Overall, in Germany we mark year number 9 of economic up-rise and boom. In contrast to that we see massive deficits in European countries, persistent structural problems, radical political shifts, protectionist tendencies in the US and a different and moderate economic development in China. We shed light on the main question:
When does The Party end?
For more information listen to the Podcast.
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