Bofinger Says the German Economy Is Growing Very Well

The video discusses the economic situation in Germany, focusing on its budget and current account surpluses. It highlights the consensus on Germany's economic growth and the challenges of reducing the surplus through higher wages. The reluctance of trade unions and employers to increase wages is noted, along with the impact on the European Central Bank's (ECB) inflation target. The discussion emphasizes the difficulty in achieving significant wage increases in Germany, which would help the ECB reach its inflation goal.

What is the consensus about the German economy at the conference?

• It is stagnant.

• It is growing very well.

• It is facing a recession.

• It is shrinking rapidly.

What is considered a good way to reduce Germany's current account surplus?

• Increasing exports

• Higher wages in Germany

• Reducing imports

• Lowering taxes

Why are trade unions and employers reluctant to increase wages significantly?

• Because of the good employment situation

• To maintain a more symmetric adjustment in the eurozone

• Both B and C

• Due to high inflation

How could higher wages in Germany help the ECB?

• By reducing unemployment

• By lowering interest rates

• By increasing exports

• By helping reach the inflation target

What is the current growth rate of unit labor costs in Germany?

• 1%

• 2%

• 3%

• 4%