Economy of any country in the world Term Paper Example | Topics and Well Written Essays - 500 words

economy of any country in the world - Term Paper ExampleThe topic is of importance as it addresses serious concerns and a significant setback to the development and economic independence of Germany.The consistent rise in pension to the ageing population results in higher taxes affects the nations contribution to the European and NATO defensive measure activities. As at 2013, Germanys GDP lessen significantly (Federal Statistical Office, 2015). That represents an underperformance in the GDP of Germany compared to her employment partners in the EU such as Italy, France, and Spain.Germans membership in the European frugal and Monitory Union (EMU) leaves the German Bundesbank out of control of its monetary policy. Instead, it depends on the European Central curse (ECB) for determination of the account of interest and money supply in setting monetary policy (Forex commercialize Watch, 2015). Macroeconomic policies in the EU grant the ECB bank the authority to reduce interest rates . In 2012, the ECB reduced the rates only from 5.6% to 4.1% this it does in the favor of nations with higher GDP growth leaving Germany, the largest economy in the EU, adversely affected.In the 1960s, Germanys unemployment rate was at 2.7%, the percentage reversed suddenly in the blast of the new millennium with the rate of unemployment rising to 10.4%, as at 2005. The unexpected increase in unemployment rate was an indication of low performance of Germanys economy as compared to the rest of EU nations. Germanys fired population often has little motivation to find jobs because of low wages. The unemployment rate is also propelled by insufficiency of benefits to those earning average salaries (Ahearn & Belkin, 2010, p. 6).Germanys low productivity experienced in the 90s and early 2000s led to the collapse of its study industries (OECD, 2011, p. 22). The output per hour per employee dropped at an annual rate of 4.7% between 1995 and 2007, and this was an acute decline compared to the