Germany’s Trade Surplus

The cover story of the current issue of The Economist magazine concerns Germany’s trade surplus, which stood at nearly $300 billion last year. The article discusses the consequences of this surplus for trade and the global economy. A topic investigated by a sixth-semester Bachelor’s student, Liz van der Loo, for her BA thesis. Supervised by the department’s Dr. Alan Piper and Sara El-Madani, Liz has this to say about the topic and her investigation:

"The German current account surplus constitutes a problem for the Eurozone as well as for the world economy because for every surplus that is generated, there must be a deficit of the same magnitude. That means that if Germany has a surplus, other countries must have a deficit. This development is not sustainable in the long run. The problem of economic imbalances is very complex and in the case of Germany it is even more complex because due to the Euro as a single currency, the German government cannot control the monetary policy and has to find different solutions. In my investigation, I will depict the extent of the problem and discuss causes and possible solutions for it. Finally, I will present my own study on opinions about the topics, collected from people from different countries."

You can read the Economist’s article here.

If you want to contact Liz, please first email Alan Piper.