Germany's record trade surplus is a bigger threat to euro than Greece | via @Telegraph http://t.co/FDEoKfo0dZ ht @wonkmonk_
— Ramanan (@Ramanan_V) May 5, 2015
Mike's take on US trade data from earlier:
6-yr high in US trade deficit almost certainly takes Q1 GDP negative. We'll get to see it in the first revision later this month.
— Michael Norman (@mikenorman) May 5, 2015
It helps to increase sales when you lower the prices...
2 comments:
Good point about Germany’s trade surplus. What with inflation being around zero in Germany, they should so*ding well implement a bit of stimulus to the point where inflation reaches near the 2% target.
However I suspect Europe’s leading economists don’t know how to do that, so I suggest they seek advice from someone who is an expert on raising inflation: Robert Mugabe. In fact Mugabe should be in charge of economics at Harvard. He couldn’t possibly be worse than Rogoff, Reinhart, etc.
Ralph they are probably lowering prices to get the increased sales.. so forget about "inflation" as economists term it.... they are looking to increase sales volume. ..
Imo there is STILL a lot of "rent" as Tom might term it or excess margins as I might term it in prices in the German product lines...
So they could go even lower than current imo...
Rsp
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