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A common criticism of Germany in the post-crisis period has been that its economy is unbalanced, with the country’s reluctance to increase public spending or reduce its large current account surplus being cited as problems for other Eurozone economies. Donato Di Carlo argues that this narrative entirely overlooks the extent to which the German economy has already gone through a process of rebalancing in recent years. He suggests that the country cannot and should not be seen as a ‘fixer of last resort’ for the single currency.
