The Lack of Government Success in Reducing East German Unemployment Analysis and Explanations

Abstract

Germany is one of the world’s highly developed industrial nations and the third largest economy after the United States and Japan. One of the founding members of what today has become the European Union (EU), it is currently the Union’s most important market. With an export volume equaling one third of its gross domestic product (GDP), Germany is the biggest exporter of goods worldwide.  In 2004, industry accounted for 84 percent of its national exports, making Germany one of the world’s largest and most technologically advanced producers of iron, steel, coal, cement, chemicals, machinery, vehicles, and electronics. Successful fiscal and monetary policies ensure a stable and low inflation rate, which has been key to attracting foreign investment. Overall, it is hard to overestimate Germany’s role in the world trade and economy.