The paper "Success of the Government and the Central Bank of Germany in Running Economy over the Last Two Years" is a great example of a micro and macroeconomic case study. Germany is an open economy where social protection and the state play a dominant role. The economic decisions made in Germany are based on the need to compete globally which has been a fundamental economic law since the Second World War (Storm and Naastepad, 2015). Despite this, there are protectionist measures in some areas of Germany economy. This is especially the protection of individuals due to the provision of employment.
The Germany economic growth picked up in 2014 after a period of two years of weak growth. Germany was able to register a growth of 1.6% in 2015. The government has been expecting economic growth of 1.8% in 2016 (Destatis, 2015). The government has a major role in the Germany economy. The central bank also has a great impact on the Germany economy. Germany's central bank (Bundesbank) is a politically independent body whose mandate is focused on price stability and targeting (Berggren, Daunfeldt, and Hellströ m, 2014).
Bundesbank has been able to maintain transparency which has also supported economic growth. This paper looks at how successful has the government and the Central Bank of Germany been in running the economy for the past 2 years. The paper also describes and evaluates the main macroeconomic policies used by the Government and Central Bank of Germany over the last two years. The success of the Government and the Central Bank of Germany in running economy over the last two years Unemployment Despite the difficult international economy, the Germany economy has been performing well.
The Germany economic growth has been able to match the potential output growth (Cantoni, Dittmar and Yuchtman, 2015). The country's unemployment levels have been falling compared to most of the countries in the eurozone (Engbom, Detragiache and Raei, 2015). The current development in Germany labour market has been boosted by low inflation (Kirkegaard, 2014). The government has made a lot of efforts in enhancing the labour market. In 2015, there were 43.5 million people in work which is an increase of 400,000 people than a year earlier (Destatis, 2015).
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