by Chris Becker
Another blow to the adherents of Ricardo’s theory of comparative advantage, or that the macroeconomy of Germany is one to be emulated, is the huge fallout from the Volkswagen emissions scandal.
Unlike the hand wringing and concern over the Greek debt crisis, this might have more of an impact, due to the concentration and over reliance on an export dominated industry, supported by the State. It comes at a bad time too, just as its No.1 export partner China begins to re-structure.