Germany : Selected Issues

Author/Editor:

International Monetary Fund

Publication Date:

November 2, 2004

Electronic Access:

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Summary:

This Selected Issues paper on Germany reviews investment trends and business capital stock in Organization for Economic Co-operation and Development (OECD) countries. Sharp wage increases are found to boost capital formation in the short term as employers substitute capital for labor at a rate that adjusts to the higher relative price for labor. To limit the political economy biases to fiscal policy, the paper explores options to strengthen budgetary institutions, notably more transparency; stronger budgetary rules; and more room for Länder governments to mobilize revenue and tailor spending to local circumstances.

Series:

Country Report No. 04/340

Subject:

English

Publication Date:

November 2, 2004

ISBN/ISSN:

9781451810455/1934-7685

Stock No:

1DEUEA0022004

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

104

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