Germany s Economy And The Economy Essay - 2104 Words

Germany While looking at an overview of Germany’s economy and individual can tell, the country is very economically sound and efficient. Even though Germany’s economy is currently doing very well, the still deals with different fiscal policies, lags and deficits, like any other country. There are also a couple of other factors that play into Germany’s economy, including banking and financial institutions, and international trade. There are two kinds of fiscal policies; expansionary and contractionary. An expansionary fiscal policy per the textbook Macroeconomics Principles, Problems, and Policies, â€Å"consists of government spending, tax reductions or both, designed to increase aggregate demand and therefore raise real GDP.† Germany Cuts 2016 Tax Revenue Forecast Due to their migrant crisis. Their total tax dollars will be lower than previous years to create pressure in their economy. They made this tax cut so that they stop getting all the immigrants to move into their economy. Germany is trying to keep their money within their country instead of new consumers (Bender). A contractionary â€Å"consists of government spending regulations, tax increases or both, designed to decrease aggregate demand and therefore lower or eliminate inflation† (Bender). German has a tax reform that causes and increase in taxes on their fuel and energy. This is going to affect the industries and the producers. They have done this because of the impact of the competitiveness. TheShow MoreRelatedA Look Into Germany s Economy Essay2559 Words   |  11 PagesGermany Natalie Retzlaff, Blake Otte, Cameron Bancroft, Claudia Navarro Economics 2110 CRN 10232 A Look into Germany’s Economy When looking at a map of Europe and asked to identify a country with one of the best economically sound counties, many people would say Germany. According to the UK – German connection Voyage, â€Å"Germany is a republic with a parliamentary democracy and a bicameral system of government. 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