Individual Critique - Literature review Example

2.0- SYNOPSIS FROM THE ARTCILE The article pointed to the importance of following factors behind the economies resisting growth: The recovery from recession receive great impact from the social factors Exports of a country has a great role to play in the recovery specifically in the net exports Role of debts and foreign direct investment is also critical. Impact of united currency in the overall recovery of countries (Walker, 2013). 3.0- ACADEMIC ALLIGMENT The article asserting the agreed upon definition of recession that paved way for the economy resisting to recovery.

Among large number of factors with economic and financial strategies that play role in the economic recovery, the article highlights the dominant impact of social factor. The importance of the social factor is insisted with fact that despite the high public debt levels of Germany beyond the agreed 3% of GDP (BBC, 2012); the market considers Germany as safe heaven for investment while considering Spain and Italy in trouble. Exploration of working conditions behind provided evidence that Spain, Italy and France had heightened the private debt (as shown in figure below) during economic growth boom to increase investments and resultantly raised the wages.

(BBC, 2012) In the similar duration Germany has maintained the wages level and has developed greater export base. Hence, despite being hit by recession Germany has a positive outlook while consumers in mentioned countries are concerned with paying up debts and increased competitive wage rate has low spending sentiment thereby resisting recovery with social factors (Economou at el., 2012). Moreover, the increased resistance of French economy to recover can also be traced to have a greater contribution from similar factors as given below: (BBC, 2012) Hence unlike the dominant economic notion of high negative impact, public debt only on economic recovery is contrasted with current situation.

Moreover, the increased pressure of controlling the public debt is also countered with continuing positive outlook of German economy. Strategy of German economy is to increase export with control wage rate developed trade surplus and hence the economy is in better position to attract foreign direct investment while the economies in trouble, in contrast, are facing trouble of huge trade deficit with piled up imports as referred below: (BBC, 2012) The current conditions of France to revisit its growth estimates along with relaxing labor laws also assert the realization of over burdened economy.

While deteriorating condition points to the piling up of all factors of trade deficit, extensive government borrowing along with private borrowing as well as the labor law problems. Hence, assessment highlights reasons for controlling the debt in all in a broader context of all mentioned factors; unlike traditional theories that posed all pressure on public spending only. However, this does not refer any relaxation for public debt going beyond the set limits and due importance of controlled public debt still retains the elementary position in economic betterment.

The other highlighted factor that is making exports expensive and costing the economic recovery of countries in trouble is the increased attention to strengthen the united currency. In contrary to foundation stones for Euro that promised growth in jobs and exports, the strengthening Euro has started