With an annual trend growth rate of just over 1% by 2060, the OECD predicts that Germany will grow only half as quickly as the United States. As measured per capita, however, Germany and the US are expected to grow at a similar pace, by 1.5% per year by 2060. So, what can Germany do to improve its growth prospects in the long run?
But equally importantly, we have also argued that greater exchange rate flexibility in those countries will, in fact, best serve their own needs, in terms of promoting sustained economic growth through stronger domestic demand and an efficient allocation of resources. Now, what about the more general issue of the integration of Asia, and particularly China, into the world economy?