Can wage hikes in Germany contribute to a reduction in global trade imbalances? A new study answers this question. Applying a general equilibrium model, it shows that, although wage hikes in Germany reduce the country’s trade surplus, the quantitative effects are relatively small and depend on the European Central Bank’s monetary policy response.

The Bundesbank has a dedicated credit assessment system to assess the credit quality of debtors of non-marketable assets. Credit assessment goes back a long way at the Bundesbank. Counterparties can use the Bank's credit assessment to determine an enterprise's or debtor's eligibility in the context of their monetary policy operations.