Japan and Germany

[phillp2@xxxxxxxxxxxxxxx]

I don't know why it is, but when I respond to something from PKT it
goes to the original author and not to PKT.  I know Barkley and
Paul D have also complained of this.  Therefore, I am posting my
original reply to James and others on the Japan/Germany
comparison directly to PKT.  If James wishes, he may post his
response and my response to his response ....

Paul Phillips,
Economics,
University of Manitoba


It seems to me that to try to compare Germany with Japan as
export-led economies is both misleading and counter-informative. It
would be like comparing New York State with Japan.  While the
EU (and the European Community and ECM before it) is not a
unified state, for economic purposes it effectively is such that most
of Germany's exports and imports are effectively internal transfers
between states of a union rather  than exports or imports in the
traditional sense.  With the adoption of the Euro, much if not most
of
Germany's 'exports' cease to be exports but are equivalent to New
York
States 'exports' to California and the other how many it is other
states in the union.

Europe, as a whole, is a relatively self-sufficient economy on a par
with the US such that exports *from Europe* is not the driving force
of the *European economy*.  This can not be said of Japan which
has no
balancing hinterland to exchange with.  Trade and economic
integration
with China and perhaps other regional economies might create a
more
autonomous economic unit.  But that has been procluded by
dependence
on the American market and the American political system as
others
have documented.

In short, I think we should get away from comparing Germany and
Japan as equivalent 'export based' economies.

Paul Phillips,
Economics,
University of Manitoba