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Can Europe's Economy Handle Russian Sanctions? | Frances Coppola
Forward Guidance
Germany's External Excess Is a Fragility
The other side of any export surplus is somebody else's imports. If supply chains were too abruptly reversed, if countries simply went into recession started buying this, Germany's surplus could fall. And that would have a serious knock-on effect into its economy. But we're not really concerned enough about the people who are reliant on the kindness of strangers to buy their exports, and yet it's two sides of the same coin.
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