The Intelligence from The Economist Spend, sometime: Germany’s economic shift
Jun 11, 2020
Tom Nuttall, The Economist’s Berlin bureau chief, sheds light on Germany's surprising economic turnaround after years of austerity. He discusses the nation’s expansive financial relief package and a significant shift in fiscal policies spurred by recent crises. The conversation also touches on the political turmoil in Burundi following the death of its long-time leader, hinting at uncertain prospects for the country's future. Nuttall expertly ties together economic strategy and political stability in these two very different nations.
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Germany's Economic Shift
- Germany's economic approach is shifting, illustrated by a larger stimulus package than after the 2009 financial crisis.
- This signals a change in economic thinking, moving away from strict austerity.
Reasons for the Shift
- The COVID-19 crisis catalyzed the shift, but underlying changes were already happening in Germany.
- A new generation of economists, more internationally connected, influence policy.
Scholz's Influence
- Finance Minister Olaf Scholz's ministry fosters open dialogue with economists.
- This contrasts with his predecessor's disdain for economists, suggesting another reason for the shift.