How Germany's Labor Market Reforms Crushed the French

and the PIIGS

Stephanie Kelton, Associate Professor of Economics University of Missouri – Kansas City

Avraham Baranes, Ph.D. Student, Dept. of EconomicsUniversity of Missouri – Kansas City

Portugal Italy Ireland Greece Spain Germany France

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

Current Account 1997P

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of

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Portugal Italy Ireland Greece Spain Germany France

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

Current Account 1998P

erc

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of

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Portugal Italy Ireland Greece Spain Germany France

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

Current Account 1999P

erc

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of

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Portugal Italy Ireland Greece Spain Germany France

-12.0%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

Current Account 2000P

erc

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of

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P

Portugal Italy Ireland Greece Spain Germany France

-12.0%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

Current Account 2001P

erc

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of

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Portugal Italy Ireland Greece Spain Germany France

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

Current Account 2002P

erc

ent

of

GD

P

Portugal Italy Ireland Greece Spain Germany France

-7.0%

-6.0%

-5.0%

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

Current Account 2003P

erc

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of

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Portugal Italy Ireland Greece Spain Germany France

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

Current Account 2004P

erc

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of

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Portugal Italy Ireland Greece Spain Germany France

-12.0%

-10.0%

-8.0%

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-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

Current Account 2005P

erc

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of

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Portugal Italy Ireland Greece Spain Germany France

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

Current Account 2006P

erc

ent

of

GD

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Portugal Italy Ireland Greece Spain Germany France

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

Current Account 2007P

erc

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of

GD

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Portugal Italy Ireland Greece Spain Germany France

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

Current Account 2008P

erc

ent

of

GD

P

Portugal Italy Ireland Greece Spain Germany France

-14.0%

-12.0%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

Current Account 2009P

erc

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of

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Portugal Italy Ireland Greece Spain Germany France

-12.0%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

Current Account 2010P

erc

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of

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Portugal Italy Ireland Greece Spain Germany France

-12.0%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

Current Account 2011P

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