S. Chase Gummer
Policy Report 49 analyzes the policy responses of Germany and the United States to the continued economic and financial unrest. The authors examine the origins of Germany’s economic policy and order as well as the current role Germany is playing in the European economy. They also analyze implications for European integration, security issues, and the transatlantic partnership.They argue that because the Great Recession had different economic effects in Germany and the U.S., policymakers’ responses differed as well. But, once the economic circumstances converge, economic policy in Germany and the U.S. will also become similar again.
Despite improvements in the American and European financial markets in 2010, the fiscal crisis in Greece and the continually rising U.S. deficit have caused a decline of trust in the capital markets and have overshadowed any growth in the real economy. Overcoming the recession and returning to a sustainable growth pattern, however, is of paramount importance for the wealth and security of all nations, write AICGS Business & Economics Program Director Dr. Tim Stuchtey and S. Chase Gummer. In Issue Brief #39, Stuchtey and Gummer examine existing global economic imbalances and the impact these imbalances have on international security.