100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached 4.2 TrustPilot
logo-home
Other

What is the trajectory of Germany's Economy?

Rating
-
Sold
-
Pages
13
Uploaded on
08-09-2025
Written in
2024/2025

This report evaluates Germany’s macroeconomic performance as a G20 nation, focusing on Real GDP, consumption, investment, government expenditure, net exports, and interest rates over the past two decades. Germany, Europe’s largest economy and the fourth largest globally, plays a central role in global trade and stability. The analysis applies Keynesian theory and the IS-LM framework to assess how fiscal and monetary policy interventions shape economic equilibrium. Germany’s economy has demonstrated resilience, with moderate growth driven by its strong industrial base and export sector. However, external shocks such as the global financial crisis and the COVID-19 pandemic triggered contractions in GDP, consumption, and investment, while net exports temporarily declined before recovering. Fiscal policies, including tax cuts and stimulus spending, shifted the IS curve rightward, supporting recovery, while the ECB’s monetary easing through liquidity injections and low interest rates shifted the LM curve downward, encouraging investment and consumption. The report concludes that while Germany’s trends broadly align with Keynesian theory, high savings rates and ECB-driven monetary policy limit the IS-LM model’s accuracy. Effective long-term growth will depend on balancing fiscal support with structural reforms and external demand stability.

Show more Read less









Whoops! We can’t load your doc right now. Try again or contact support.

Document information

Uploaded on
September 8, 2025
Number of pages
13
Written in
2024/2025
Type
Other
Person
Unknown

Content preview

Macroeconomic modelling




Word count : 2100
Due Date: March 31st, 2025

, Contents
Introduction...........................................................................................................................................3
Literature review....................................................................................................................................3
Real GDP............................................................................................................................................3
Personal Consumption.......................................................................................................................4
Gross Capital Formation.....................................................................................................................5
Government Expenditure..................................................................................................................5
Net exports........................................................................................................................................6
Policy interest....................................................................................................................................6
Theoretical Application..........................................................................................................................7
Fiscal Policy Intervention...................................................................................................................8
Monetary Policy Intervention............................................................................................................9
Discussion............................................................................................................................................10
Conclusion...........................................................................................................................................11
Bibliography.........................................................................................................................................12

Get to know the seller

Seller avatar
Reputation scores are based on the amount of documents a seller has sold for a fee and the reviews they have received for those documents. There are three levels: Bronze, Silver and Gold. The better the reputation, the more your can rely on the quality of the sellers work.
thelegend2 Redbridge College
View profile
Follow You need to be logged in order to follow users or courses
Sold
9
Member since
3 year
Number of followers
7
Documents
14
Last sold
7 months ago

4.0

2 reviews

5
0
4
2
3
0
2
0
1
0

Recently viewed by you

Why students choose Stuvia

Created by fellow students, verified by reviews

Quality you can trust: written by students who passed their exams and reviewed by others who've used these revision notes.

Didn't get what you expected? Choose another document

No problem! You can straightaway pick a different document that better suits what you're after.

Pay as you like, start learning straight away

No subscription, no commitments. Pay the way you're used to via credit card and download your PDF document instantly.

Student with book image

“Bought, downloaded, and smashed it. It really can be that simple.”

Alisha Student

Frequently asked questions