German investments would generate ‘beneficial' regional spillovers, finds IMF paper
‘Time-to-build' delays offset by accommodative monetary policy stance
Higher German public investment would raise economic output in the long run and generate beneficial regional spillovers, a new International Monetary Fund working paper finds.
Das Public Kapital: how much would higher German public investment help Germany and the euro area?, by Selim Elekdag and Dirk Muir, also finds that high public investment would stimulate domestic demand in the near term and reduce Germany's hefty current account surplus.
According to Elekdag and Muir, expansionary effects
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