Germany is coming to resemble France in balancingEuropean cohesion with the pursuitofnationalstatus, says Gunther Hellmannof Johann Wolfgang GoetheUniversityinFrankfurt.
In a paper last year for the Stanford Institute for Economic Policy Research, Stanford's John Cogan and John Taylor, with Volker Wieland and Maik Wolters of Frankfurt, Germany's GoetheUniversity, show that a reduction in federal spending over several years amounting to 3% of GDP bringing noninterest spending down to pre-financial-crisis levels will increase short-term GDP.