Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/115889
Authors: 
Gadatsch, Niklas
Stähler, Nikolai
Weigert, Benjamin
Year of Publication: 
2015
Series/Report no.: 
Discussion Paper, Deutsche Bundesbank 29/2015
Abstract: 
In this paper, we assess the impact of major German structural reforms from 1999 to 2008 on key macroeconomic variables. By many, these reforms, especially the Hartz reforms on the labor market, are considered to be the root of observed imbalances in the Euro Area. Our simulations within a two-country monetary union DSGE model show that, in terms of German GDP, consumption, investment and (un)employment, the reforms were a clear success albeit the impact on the German current account was only minor. Most importantly, the rest of the Euro Area benefited from positive spillover effects. Hence, our analysis suggests that the reforms cannot be held responsible for the currently observed macroeconomic imbalances within the Euro Area. Further simulations highlight the importance of increased savings preferences in Germany to explain the latter.
Subjects: 
Fiscal Policy
Labor Market Reforms
DSGE Modeling
Macroeconomics
JEL: 
H2
J6
E32
E62
ISBN: 
978-3-95729-184-4
Document Type: 
Working Paper

Files in This Item:
File
Size
612.07 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.