Thank goodness for small victories. (HT Andy Roth)
Guests at The Economist ponder the reason(s) behind the strength of Germany’s economic recovery. This line from Carmen Reinhart is important:
Germany was a notable outlier in the now-notorious credit and debt boom of the decade prior to the onset of the subprime crisis. Credit relative to nominal GDP fell about 11 percentage points during 1997-2007; during the same period, credit/GDP rose 80 percentage points for most of the advanced economies.