.@kowsmann and @TomFairless write an important article that explains much about the dynamics of monetary union but for me misses an important point: the problem is not that Germans save so much but how they save it. Let me explain some of this (thread) wsj.com/articles/germa…
@kowsmann @TomFairless Germans save. A lot. But the problem is: they don’t buy houses or appartments and they don’t buy stocks. So ECB interest rates hit them hard. Because that’s how Germans save. And then there’s another problem that the article shows... /2
@kowsmann @TomFairless The medium net wealth of households. Because Germans save a lot and then invest it in rather insane ways - with many of them not owning their home, they are, as households, poorer than Greece or Italy. /3 
@kowsmann @TomFairless You can see how this allows for a narrative critical of wealth transfer. The “simple” solution: make Germans participate via share ownership in the success of the German economy that (unlike German savers) profits from currency union. That benefit? Went to others... /4
@kowsmann @TomFairless As already back in 2007 a majority of German shares was held abroad. Changing minds is hard... dw.com/en/foreign-own…
