Don't bash Germany for its trade surplus
Presseartikel von Hans-Werner Sinn, CNN.com, 17.02.2011
(CNN) -- Many politicians today criticize Germany for its large current account surplus, and insist that it be reduced. Germany, goes the argument, profited the most from the euro and should now stand by the troubled countries and give them more loans. Those who so argue show they haven't understood a thing. They blithely overlook the fact that both demands stand in contradiction to each other, because a country's current account surplus is by definition the same as its capital exports. It is impossible to reduce the current account surplus and lend more capital to other countries at the same time. They also ignore the effects wrought by the euro throughout Europe.