Fuest: Brexit Reaction May Come Later for Germany

The transcript discusses the impact of Brexit on the German economy, highlighting stable current conditions but weakened expectations, especially in exports. It explores potential European Central Bank stimulus and its effects on the euro exchange rate, which could benefit German exports. The conversation also touches on market reactions, household spending, and the risks of rising property prices. Finally, it examines the euro's valuation against the dollar, the German economy's reliance on exports, and the influence of domestic economic factors.

What is the current state of the German business situation post-Brexit vote?

• It is stable but with weakened expectations.

• It is unstable with high expectations.

• It is booming with strong export growth.

• It is declining with no future prospects.

How might the European Central Bank's stimulus affect the euro exchange rate?

• It will have no effect on the euro exchange rate.

• It could drive down the euro exchange rate.

• It might stabilize the euro exchange rate.

• It could increase the euro exchange rate.

What is a potential negative side effect of the European Central Bank's monetary policy?

• Increasing property prices.

• No change in property prices.

• Stabilizing property prices.

• Decreasing property prices.

What is the appropriate euro valuation against the dollar for Germany according to the transcript?

• Unrelated to the current valuation.

• Higher than the current valuation.

• Equal to the current valuation.

• Lower than the current valuation.

What is driving the German economy according to the transcript?

• Foreign investments.

• Tourism industry.

• Export growth.

• Domestic economy.