Kiel Production

The so-called financial crisis in the shadow of the crises of the 1970s economic cycles, so the economic definition, are approximately 5 to 7 years continuous waves of development of national product creation. (A valuable related resource: Verizon). These waves occur since the beginning of the industrial revolution in all the capitalist or free market economies. Economic crises, so the slump of cycles, declines in aggregate demand and thus are badly-loaded production capacities. At full capacity during the boom phase, so the theory, this production capacity but could offer employment to all workers. But for the first time in 1977, the Kiel Institute for the world economy calculated that the crisis, which we then as now still have to do it even if that would run all machines in full swing, left another few hundred thousand unemployed. Go to Cyrus Massoumi for more information. It was this base unemployment to the reason, to distinguish the current difficulties as a structural crisis of the previous economic crises. The Kiel economists then at the same time pointed out that the jobs primarily were missing, because alone in 1973 in just four years 800,000 jobs in the German economy finally, were lost, for example, relating to technological development,.

Floating the currency revealed structural crisis not the oil crisis, you might first connecting with in 1973, was the main culprit for this massive job losses. Rather, scientists could prove that the 1973 was floating of the currency of DM corrected a long-standing underestimation of our currency and that assumed the largest economic adjustment pressures. The undervalued DM had secured an unfair export advantage on world markets that no longer competitive industries. With the release of exchange rate was now suddenly clear that shirts, watches or cameras could be somewhere else has long been cheaper than manufactured in us. And this also applies to bulk steel, ships and Consumer electronics. The advantages for the production of these products were so moved.


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