3 ms·
> The fixed exchange rate 4,20 DM == 1$ in the 1950s is usually cited as helping German exports during the 1950s. During later decades the Deutsche Mark was exc
by oskarth 12y ago
> The fixed exchange rate 4,20 DM == 1$ in the 1950s is usually cited as helping German exports during the 1950s. During later decades the Deutsche Mark was exceptionally strong, in theory harming German exports.
...which Varoufakis talks about extensively in his book. You would know that if you actually read it.
Essentially he splits the world economy post-WW2 into two phases: The Global Plan and The Global Minotaur. The second started (roughly) in the 70s, when US was starting to become a deficit country. This is when the US strategy vis-a-vis Germany and Japan changed. Of course it's more complicated than that, but that's the gist of it.
> At least he has build a congruent worldview that lets him sleep well at night.
If you are gonna be an armchair critic, please be an well-informed one and read what you are commenting on.
- UweSchmidt 12y agoI'm primarily commenting not on the book (the existence of which I just learned in the previous book), but on the article. Point is that German exports have been strong when the currency was strong, and they are strong with other EU countries as well as outside the EU. The USA may have helped Germany with a favourable exchange rate out of political motivation (strong ally, look commies how well OUR Germany is doing - props to the US btw.). Economically it seems like a bad deal; Wallstreet might benefit indirectly, but it's not like the USA took ownership of German companies as reparations (that's what the Soviets did, again, thanks Americans for being cool like that). "You would know that if you actually read it." Key is, I knew it without reading it, as the topic is already ultra-well researched. The onus can't be on me to read his book, in particularly coming from that author: Wouldn't he likely be the most biased person on the planet in this matter? Objectively, giving him all the credit (heh...), wouldn't such a book be primarily a political statement of a man under immense pressure? A tool to put some narrative to support his politics? Big words like "The Global Minotaur" would make it seem like it is. Basically, the article discusses the global effects of "global imbalances". The author does not say Germany is to blame for Greece's problems.
- deleted 12y ago[deleted]
- orbifold 12y agoHe wrote that book well before he came into political office, talks on the subject by him have been both well received by Hedge Funds and Banks as well as far left groups. His analysis isn't even all that original, in the book he carefully points out evidence that in fact the policy makers were well aware of the necessity of a global surplus recycling mechanism. With regards to the Euro crisis he merely criticizes that German policy makers lack similar vision and forethought but are stuck in provincial mercantilism.