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Are Germans wasting their savings abroad? CEPS Commentary, 7 April 2016

Busse, Matthias and Gros, Daniel. (2016) Are Germans wasting their savings abroad? CEPS Commentary, 7 April 2016. [Policy Paper]

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    Germany is running a current account surplus of about 8% of GDP, which means that about one-third of all German savings (equal to 24% of GDP) has to be invested abroad every year. It has become by now almost a cliché that these huge excess savings are being wasted abroad. But this is a popular misconception based on the divergence between the available data on the (cumulated) current account balance (cCAB) of Germany and its net international investment position (NIIP). A closer look at the data actually suggests that the NIIP is probably not measured correctly and that the observed returns on German investment abroad have remained above most domestic returns.

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    Item Type: Policy Paper
    Subjects for non-EU documents: Countries > Germany
    Subjects for EU documents: UNSPECIFIED
    EU Series and Periodicals: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Series: Series > Centre for European Policy Studies (Brussels) > CEPS Commentaries
    Depositing User: Phil Wilkin
    Official EU Document: No
    Language: English
    Date Deposited: 13 Apr 2016 13:01
    Number of Pages: 3
    Last Modified: 13 Apr 2016 13:01

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