Thursday, July 22, 2010

If the Germans spend more, who will benefit, the rest of the Eurozone or China and other WTO economies?

So the savers must become spenders, the spenders savers, the exporters importers and the importers exporters?

If the German consumers spend more while the EU is in the WTO, most of the benefit will go to:

1) The Chinese and other non-EU (in WTO) "super cheap" exports
2) The exports of other Eurozone economies?

I suspect the former (1).

Does that mean that the EU should leave the WTO for the benefit of more balance in the Eurozone?

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