Why Do German and U.S. Reactions to the Financial Crisis Differ?

in German Politics and Society
View More View Less
  • 1
Restricted access

Among the many striking developments that arose out of the 2008-2009

financial crisis and the subsequent EURO crisis has been the policy divergence

between the United States and Germany. Typically, the two countries

have broadly similar preferences regarding economic policy. To be

sure, this is not the first time that Germany and the U.S. have failed to see

eye to eye on economic matters,1 but the recent gap in perception and

policy does warrant attention because it has been unusually large. Unlike

the famous quarrels between Jimmy Carter and Helmut Schmidt in the

1970s,2 personality does not seem to play a role in this case. What then

does explain the gulf?