Article: GERMANY'S MEDIOCRE PERFORMANCE.

There has been much speculation about what could possibly be influencing the mediocre performance of Germany's economy going well back into the 90s. The Bank of England (BoE) obviously has a vested interest in understanding this phenomenon because of the importance of Germany as a trading partner, and therefore as having an effect on its own economy.

Recently, the BoE published a short but incisive critique of Germany's economy particularly in the area of household spending. The BoE said there were three things holding Germany back: Labor, construction and the corporate sector.

The direct connection between employment and household spending need not be ...

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