By Professor Dr. Gerhard Fels, Dr. George M. von Furstenberg (auth.), Professor Dr. Gerhard Fels, Dr. George M. von Furstenberg (eds.)
This booklet bargains with supply-side economics and the wanted reorientation it should carry to West German coverage. The switch, urged after looking out research, may upload as much as an total method for releasing markets, for removal government-imposed distortions, and for utilizing free-market ways to right distortions imposed by way of strain teams. the method could pierce Germany's state-supported encrustations and corporatism. it will equip the rustic to persist with the lead of the us and nice Britain in commencing to break out from the tangle within which taxes, rules, and unemployment have grown in step. the upcoming finishing touch of the ecu inner industry in 1992 provides urgency to this task.
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Additional info for A Supply-Side Agenda for Germany: Sparks from - the United States - Great Britain - European Integration
Annual net outflows of direct investment grew so rapidly in subsequent years that by 1980 Germany changed from being a net debtor to a net creditor on a stock basis too. The net increase in German direct in- investment abroad over the 1976-85 period, which amounted to DM 63 billion, was actually larger than the growth in Germany's over-all net external assets over that period, which totaled approximately DM 50 billion (Deutsche Bundesbank, 1987, p. 21). With respect to the most recent past, two related developments deserve particular attention.
Phelps (1970), which yielded the non-accelerating-inflation rate of unemployment (NAIRU). This concept is the natural rate of unemployment in another guise, as ground out by micromarkets (Walrasian or not) with all their distortions. Second, and not to be forgot- ten merely because of its weak theoretical underpinnings at the time, is the "cost-push" literature, of which A. G. Hines (1964) was a prime example. pushing up wage costs. K. " In the postwar period Grube1 and his students explored its relevance more rigorously in a number of countries, for example, D.
Yet economic revitalization crucially depends on the ability of economists to convey their message to the public. This is what we are trying to do in this volume by speaking to a broad range of decision makers, and not just to each other, about the political and economic choices before us. References Corden, W. Max, Inflation, Exchange Rates, and the World Economy, Chicago: University of Chicago Press, 1977. Deutsche Bundesbank, "Trend of International Capital Links between Enterprises from 1976 to 1985," Monthly Reports, March 1987, 39(3), pp.