German Economic Issues: An Informed Questions Paper

摘要

If Germany's birth rate remains at its current level, the population will decline from 82 million to less than 60 million in the next 50 years. 'Over the same period, employment figures will drop from 41 million to just 26 million. By 2015 at the latest, the number of employed persons will begin to fall radically. Those still working will have to support an inordinate number of retirees as life expectancies rise and the population ages.' Will this combination of an aging, shrinking population force Germany to adopt a more open immigration policy. Will Germany consider easing the barriers to citizenship even for 'guest workers' who have been living in Germany for years. One of the keys to Germany's success in keeping inflation relatively low (under 3%) has been the tight monetary policy of the Bundesbank, Germany's central bank. Now that the mark has been replaced by the common European currency the Bundesbank can no longer dictate monetary policies. What are the prospects for increasing inflation, giving the rising Federal deficit and continued subsidies in large areas of the economy in the East. What tools remain to the Government to control inflation without the availability of a strong central bank.