Exorcising Ghosts of Inflation and Unification from German Economic Policy

Adam S. Posen delivered the annual Kurt Viermetz Distinguished Visitorship in Economics lecture on March 14, 2013, at the American Academy in Berlin. Much has been made of the need for a "normalization" of German foreign policy and a departure from historically-motivated, self-imposed constraints. Posen argued in his lecture that a similar realization is overdue in German economic policy, where exaggerated memories of hyperinflation and unification distort current public policy decisions. The need for this kind of reevaluation has become pressing due to the German government's approach to the euro crisis. While the recent performance of the German economy has been solid and the risk of a break-up of the euro area has subsided, these deeply rooted sentiments inhibit more pro-growth approaches in Germany and its neighbors.

>> More information from the American Academy in Berlin website.