OECD economic surveys : Germany 1997-1998 / Organisation for Economic Co-operation and Development.

Format:

Book

Author/Creator:

Organisation for Economic Co-operation and Development, issuing body.

Series:

OECD Economic Surveys: Germany

Language:

English

Subjects (All):

Economic history.

Germany--Economic conditions--1974-.

Germany.

Germany--Economic policy--1974-.

Physical Description:

1 online resource (181 pages)

Edition:

1st ed.

Place of Publication:

Paris, France : OECD Publishing, [1998]

Language Note:

English

Summary:

Assessment and recommendations I. Establishing the basis for longer-run growth -Overview -Improving macroeconomic fundamentals -The impact of structural adjustment -Medium-term perspectives II. Monetary and fiscal policies -Overview -Monetary Policy -Fiscal Policy III. Towards more efficient government: reforming federal fiscal relations -Introduction -Inter-governmental relations: consensus and coordination -The fiscal equalisation system -Implementing the Stability and Growth Pact: the need for a domestic equivalent -Matching expenditures and revenues: the case for greater state autonomy -Summing up IV. Implementing structural reform: a review of progress -Dimensions of the employment and unemployment problem -Progress in labour market reform -Improving skills, entrepreneurial dynamism, and competition -Overview of progress in structural reform Annex I: Simulating business sector employment and investment Annex II. Productivity and structural unemployment Annex III. Chronology of main economic events Annex IV. Statistical annex and structural indicators.

Contents:

Intro

Assessment and recommendations

I. Establishing the basis for longer-run growth

Overview

Figure 1. MACROECONOMIC PERFORMANCE

Table 1. Demand and output

Improving macroeconomic fundamentals

External strength and domestic demand weakness

Figure 2. CAPACITY UTILISATION AND INVESTMENT

Table 2. Trade by region

Table 3. The current account of the balance of payments

Lower employment and falling inflation

Figure 3. EMPLOYMENT AND UNEMPLOYMENT RATES

Prospects for a broadening of the expansion

Figure 4. INTERNATIONAL COMPETITIVENESS

Figure 5. THE BUSINESS CLIMATE

The impact of structural adjustment

Improvements in competitiveness

Greater efficiency in the use of capital and labour

Employment in manufacturing has fallen sharply

Figure 6. EMPLOYMENT GROWTH IN DIFFERENT RECOVERIES

Figure 7. ACTUAL AND PREDICTED GROWTH OF BUSINESS SECTOR EMPLOYMENT

Figure 8. MAIN MOTIVES FOR BUSINESS FIXED INVESTMENT

Investment is lower than in previous cycles

Figure 9. RECOVERY PERIODS COMPARED

Figure 10. ACTUAL AND PREDICTED GROWTH OF INVESTMENT IN THE BUSINESS SECTOR

Figure 11. PROFITS AND GROWTH OF BUSINESS INVESTMENT

Total factor productivity has risen

Medium-term perspectives

Table 4. Contributions to German potential output growth

Figure 12. KEY DETERMINANTS OF POTENTIAL OUTPUT GROWTH

II. Monetary and fiscal policies

Monetary policy

Money and credit aggregates: slowing money growth

Figure 13. MONETARY TARGETS AND MONEY GROWTH

Policy rates: a stability-oriented stance

Figure 14. INTEREST RATE DEVELOPMENTS

Figure 15. THE INFLATION ENVIRONMENT

Long-term rates fall to low levels

Figure 16. YIELD CURVES AND THE YIELD GAP

Figure 17. REAL LONG-TERM INTEREST RATE DIFFERENTIAL BETWEEN GERMANY AND THE UNITED STATES.

Figure 18. EXCHANGE RATE AND LONG-TERM INTEREST DIFFERENTIALS

Assessment of monetary conditions

Figure 19. REAL INTEREST RATES

Figure 20. INDICATORS OF MONETARY CONDITIONS

Fiscal policy

Table 5. Public sector financial balances

Table 6. Public debt by government level

Meeting the Maastricht deficit criterion

Box 1. Low and unpredictable tax revenues

Table 7. Appropriation account for general government

Table 8. The Federal budget

Fiscal policy in 1998: a slower rate of fiscal consolidation

Box 2. Fiscal assumptions underlying the OECD projections

Table 9. Public financial transfers to eastern Germany

Fulfilling the medium-term programme

Box 3. The Stability and Growth Pact

Figure 21. THE BUDGET BALANCE AND GENERAL GOVERNMENT DEBT

Structural policies for effective medium-term consolidation

Towards a more efficient state

Public health provision: first experience with reform

Controlling pension finance

Tax reform: an unfinished agenda

III. Towards more efficient government: reforming federal fiscal relations

Introduction

Inter-governmental relations: consensus and co-ordination

Expenditure responsibilities overlap

Table 10. Länder expenditures co-financed by the federal government

Figure 22. FEDERAL CO-FINANCING OF SUB-CENTRAL FISCAL PROJECTS

Increasing reliance on tax sharing...

Box 4. Tax sharing and revenue equalisation in Germany

Table 11. Tax accruals by layer of government

... and declining tax autonomy

Figure 23. SHARE OF STATE AND COMMUNITY SPENDING FINANCED BY TAXES

The fiscal equalisation system

Revenues are equalised across states

Table 12. Redistribution of tax revenues in the Länder financial equalisation system

Figure 24. VARIABILITY OF PER CAPITA INCOME AND UNEMPLOYMENT BETWEEN LÄNDER.

Disincentive effects of high marginal effective tax rates on the Länder

Figure 25. OUTFLOW OF LÄNDER TAX REVENUES DUE TO INTERACTION...

Reform requirements: ensuring support while reducing disincentives

Figure 26. REAL PER CAPITA INCOME AND UNEMPLOYMENT IN THE LÄNDER

Implementing the Stability and Growth Pact: the need for a domestic equivalent

Table 13. Spending and deficits of the Länder

Matching expenditures and revenues: the case for greater state autonomy

Co-financing goes too far

Taxing powers need to be devolved

Summing up

IV. Implementing structural reform:&amp

line

a review of progress

Dimensions of the employment and unemployment problem

Table 14. The German labour market

Figure 27. STRUCTURE OF UNEMPLOYMENT

Figure 28. LABOUR SUPPLY AND DEMAND IN EASTERN GERMANY

Progress in labour-market reform

Increasing wage and labour cost flexibility

Increasing working-time flexibility and easing employment security provisions

Reducing the distortions arising from unemployment insurance and related benefits

Enhancing active labour market provisions and re-entry to employment

Figure 29. PARTICIPATION IN ACTIVE LABOUR MARKET MEASURES

Table 15. Active labour-market measures

Remaining agenda for labour-market reform

Improving skills, entrepreneurial dynamism and competition

Improving skills and technological know-how

Supporting an entrepreneurial climate

Box 5. Changing the framework of corporate governance

Increasing product market competition

Competition law reform

Reducing subsidies

Table 16. Federal subsidies and financial support

Removing barriers to entry

Deregulating the public utilities

Assessment and scope for further action

Box 6. Implementing the OECD Jobs Strategy

Overview of progress in structural reform

Notes.

Annex I - Simulating business sector employment and investment

Annex II - Productivity and structural unemployment

Annex III - Chronology of main economic events

STATISTICAL ANNEX AND STRUCTURAL INDICATORS

Table A. Selected background statistics

Table B. Gross domestic product by origin

Table C. Gross domestic product by demand components

Table D. Distribution of national income

Table E. Receipts and expenditure of general government : national accounts basis

Table F. Balance of payments

Table G. Imports and exports of goods by regions

Table H. Foreign trade by main commodity groups - customs basis

Table I. Money and credit

Table J. Population and employment

Table K. Wages and prices

Table L. Structure of output and performance indicators

Table M. Labour market indicators

Table N. Public sector

Table O. Financial markets

BASIC STATISTICS: INTERNATIONAL COMPARISONS

BASIC STATISTICS: INTERNATIONAL COMPARISONS (cont'd)

BOXES

TABLES

Table 9. Public financial transfers to eastern Germany.

Table 10. Länder expenditures co-financed by the federal government

FIGURES

Figure 17. REAL LONG-TERM INTEREST RATE DIFFERENTIAL BETWEEN GERMANY AND THE UNITED STATES

Figure 18. EXCHANGE RATE AND LONG-TERM INTEREST DIFFERENTIALS

Figure 24. VARIABILITY OF PER CAPITA INCOME AND UNEMPLOYMENT BETWEEN LÄNDER

Figure 26. REAL PER CAPITA INCOME AND UNEMPLOYMENT IN THE LÄNDER.

Figure 27. STRUCTURE OF UNEMPLOYMENT.

Notes:

Bibliographic Level Mode of Issuance: Monograph

Description based on print version record.

Description based on publisher supplied metadata and other sources.

ISBN:

92-64-15144-3

OCLC:

1225547390