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How Germany's Labor Market
Reforms Crushed the French and
          the PIIGS

     Stephanie Kelton, Associate Professor of Economics
           University of Missouri – Kansas City

    Avraham Baranes, Ph.D. Student, Dept. of Economics
          University of Missouri – Kansas City
Current Account 1997
                 4.0%



                 3.0%



                 2.0%



                 1.0%



                 0.0%
                         Portugal   Italy   Ireland    Greece      Spain   Germany   France
Percent of GDP




                 -1.0%



                 -2.0%



                 -3.0%



                 -4.0%



                 -5.0%



                 -6.0%



                 -7.0%
Current Account 1998
                 4.0%




                 2.0%




                 0.0%
                         Portugal   Italy   Ireland    Greece      Spain   Germany   France
Percent of GDP




                 -2.0%




                 -4.0%




                 -6.0%




                 -8.0%
Current Account 1999
                  4.0%




                  2.0%




                  0.0%
                          Portugal   Italy    Ireland   Greece      Spain   Germany   France




                  -2.0%
Percent of GDP




                  -4.0%




                  -6.0%




                  -8.0%




                 -10.0%
Current Account 2000
                  4.0%




                  2.0%




                  0.0%
                          Portugal   Italy    Ireland   Greece      Spain   Germany   France



                  -2.0%
Percent of GDP




                  -4.0%




                  -6.0%




                  -8.0%




                 -10.0%




                 -12.0%
Current Account 2001
                  4.0%




                  2.0%




                  0.0%
                          Portugal   Italy    Ireland   Greece      Spain   Germany   France



                  -2.0%
Percent of GDP




                  -4.0%




                  -6.0%




                  -8.0%




                 -10.0%




                 -12.0%
Current Account 2002
                  4.0%




                  2.0%




                  0.0%
                          Portugal   Italy    Ireland   Greece      Spain   Germany   France




                  -2.0%
Percent of GDP




                  -4.0%




                  -6.0%




                  -8.0%




                 -10.0%
Current Account 2003
                 3.0%



                 2.0%



                 1.0%



                 0.0%
                         Portugal   Italy   Ireland    Greece      Spain   Germany   France


                 -1.0%
Percent of GDP




                 -2.0%



                 -3.0%



                 -4.0%



                 -5.0%



                 -6.0%



                 -7.0%
Current Account 2004
                  6.0%




                  4.0%




                  2.0%




                  0.0%
                          Portugal   Italy    Ireland   Greece      Spain   Germany   France
Percent of GDP




                  -2.0%




                  -4.0%




                  -6.0%




                  -8.0%




                 -10.0%
Current Account 2005
                  6.0%




                  4.0%




                  2.0%




                  0.0%
                          Portugal   Italy    Ireland   Greece      Spain   Germany   France
Percent of GDP




                  -2.0%




                  -4.0%




                  -6.0%




                  -8.0%




                 -10.0%




                 -12.0%
Current Account 2006
                  8.0%



                  6.0%



                  4.0%



                  2.0%



                  0.0%
                          Portugal   Italy    Ireland   Greece      Spain   Germany   France
Percent of GDP




                  -2.0%



                  -4.0%



                  -6.0%



                  -8.0%



                 -10.0%



                 -12.0%



                 -14.0%
Current Account 2007
                 10.0%




                  5.0%




                  0.0%
                          Portugal   Italy    Ireland   Greece      Spain   Germany   France
Percent of GDP




                  -5.0%




                 -10.0%




                 -15.0%




                 -20.0%
Current Account 2008
                 10.0%




                  5.0%




                  0.0%
                          Portugal   Italy    Ireland   Greece      Spain   Germany   France
Percent of GDP




                  -5.0%




                 -10.0%




                 -15.0%




                 -20.0%
Current Account 2009
                  6.0%



                  4.0%



                  2.0%



                  0.0%
                          Portugal   Italy    Ireland   Greece      Spain   Germany   France


                  -2.0%
Percent of GDP




                  -4.0%



                  -6.0%



                  -8.0%



                 -10.0%



                 -12.0%



                 -14.0%
Current Account 2010
                  8.0%



                  6.0%



                  4.0%



                  2.0%



                  0.0%
                          Portugal   Italy    Ireland   Greece      Spain   Germany   France
Percent of GDP




                  -2.0%



                  -4.0%



                  -6.0%



                  -8.0%



                 -10.0%



                 -12.0%
Current Account 2011
                  8.0%



                  6.0%



                  4.0%



                  2.0%



                  0.0%
                          Portugal   Italy    Ireland   Greece      Spain   Germany   France
Percent of GDP




                  -2.0%



                  -4.0%



                  -6.0%



                  -8.0%



                 -10.0%



                 -12.0%

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How Germany's Labor Market Reforms Crushed the French and the PIIGS

  • 1. How Germany's Labor Market Reforms Crushed the French and the PIIGS Stephanie Kelton, Associate Professor of Economics University of Missouri – Kansas City Avraham Baranes, Ph.D. Student, Dept. of Economics University of Missouri – Kansas City
  • 2. Current Account 1997 4.0% 3.0% 2.0% 1.0% 0.0% Portugal Italy Ireland Greece Spain Germany France Percent of GDP -1.0% -2.0% -3.0% -4.0% -5.0% -6.0% -7.0%
  • 3. Current Account 1998 4.0% 2.0% 0.0% Portugal Italy Ireland Greece Spain Germany France Percent of GDP -2.0% -4.0% -6.0% -8.0%
  • 4. Current Account 1999 4.0% 2.0% 0.0% Portugal Italy Ireland Greece Spain Germany France -2.0% Percent of GDP -4.0% -6.0% -8.0% -10.0%
  • 5. Current Account 2000 4.0% 2.0% 0.0% Portugal Italy Ireland Greece Spain Germany France -2.0% Percent of GDP -4.0% -6.0% -8.0% -10.0% -12.0%
  • 6. Current Account 2001 4.0% 2.0% 0.0% Portugal Italy Ireland Greece Spain Germany France -2.0% Percent of GDP -4.0% -6.0% -8.0% -10.0% -12.0%
  • 7. Current Account 2002 4.0% 2.0% 0.0% Portugal Italy Ireland Greece Spain Germany France -2.0% Percent of GDP -4.0% -6.0% -8.0% -10.0%
  • 8. Current Account 2003 3.0% 2.0% 1.0% 0.0% Portugal Italy Ireland Greece Spain Germany France -1.0% Percent of GDP -2.0% -3.0% -4.0% -5.0% -6.0% -7.0%
  • 9. Current Account 2004 6.0% 4.0% 2.0% 0.0% Portugal Italy Ireland Greece Spain Germany France Percent of GDP -2.0% -4.0% -6.0% -8.0% -10.0%
  • 10. Current Account 2005 6.0% 4.0% 2.0% 0.0% Portugal Italy Ireland Greece Spain Germany France Percent of GDP -2.0% -4.0% -6.0% -8.0% -10.0% -12.0%
  • 11. Current Account 2006 8.0% 6.0% 4.0% 2.0% 0.0% Portugal Italy Ireland Greece Spain Germany France Percent of GDP -2.0% -4.0% -6.0% -8.0% -10.0% -12.0% -14.0%
  • 12. Current Account 2007 10.0% 5.0% 0.0% Portugal Italy Ireland Greece Spain Germany France Percent of GDP -5.0% -10.0% -15.0% -20.0%
  • 13. Current Account 2008 10.0% 5.0% 0.0% Portugal Italy Ireland Greece Spain Germany France Percent of GDP -5.0% -10.0% -15.0% -20.0%
  • 14. Current Account 2009 6.0% 4.0% 2.0% 0.0% Portugal Italy Ireland Greece Spain Germany France -2.0% Percent of GDP -4.0% -6.0% -8.0% -10.0% -12.0% -14.0%
  • 15. Current Account 2010 8.0% 6.0% 4.0% 2.0% 0.0% Portugal Italy Ireland Greece Spain Germany France Percent of GDP -2.0% -4.0% -6.0% -8.0% -10.0% -12.0%
  • 16. Current Account 2011 8.0% 6.0% 4.0% 2.0% 0.0% Portugal Italy Ireland Greece Spain Germany France Percent of GDP -2.0% -4.0% -6.0% -8.0% -10.0% -12.0%