Comments on: Can German wage hikes save Greece? http://blogs.reuters.com/felix-salmon/2010/02/08/can-german-wage-hikes-save-greece/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: John-John111 http://blogs.reuters.com/felix-salmon/2010/02/08/can-german-wage-hikes-save-greece/comment-page-1/#comment-48445 Fri, 25 Oct 2013 10:47:52 +0000 http://blogs.reuters.com/felix-salmon/?p=2511#comment-48445 What has changed today in Germany since Hitler in oppression, is style. Has become less baroque and more effective
(Monde Diplomatique)

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By: ccz1 http://blogs.reuters.com/felix-salmon/2010/02/08/can-german-wage-hikes-save-greece/comment-page-1/#comment-16599 Sat, 10 Jul 2010 21:21:59 +0000 http://blogs.reuters.com/felix-salmon/?p=2511#comment-16599 From the text of Marco Annunziata:
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“They are also the result of the unbalanced pattern of growth within the euro zone. Germany has been relying on an export-led growth strategy: With virtually no wage growth over several years, it has rapidly gained competitiveness against most of its European partners,”

“If Germany continues to compress wages”
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Club Med countries don’t compete with Germany, compete with China and Low Cost Manufacturing Countries.
I believe Annunziata is confusing wages with unit labor costs.
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Wages in the West part of Germany, betwwen 2002 and 2007 rose around 9%.
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Figures from 2009 here http://www.insee.fr/fr/indicateurs/ind10 9/20100628/FR-ALL_2009.pdf
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If Annunziata study the figures from Exhibit 1 (http://web.nchu.edu.tw/~hjlee/files/Pri cing_Strategy/03_Managing%20price,%20Gai ning%20Profit.pdf) will discover that Germany is acting on Value Creation rather than on Cost Reduction. When one acts on Value Creation, productivity and wages can rise together. When one acts on Cost Reduction, productivity and wages are like cat and mouse.
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By: fxtrader14 http://blogs.reuters.com/felix-salmon/2010/02/08/can-german-wage-hikes-save-greece/comment-page-1/#comment-11866 Tue, 09 Feb 2010 12:46:14 +0000 http://blogs.reuters.com/felix-salmon/?p=2511#comment-11866 The Euro is not weak!!! Certainly, it’s weaker than the 1.50-60 range vs USD it had, but let’s not forget than it started life below parity. I’d say 1.10/1.30 is ball park fair value. EADS plans its profitability on what it considers an expnsive Euro at 1.40…
And please, Southern Europe is not just about olives and beaches.

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