This morning’s link is very good reading. Other authors, such as Jörg Bibow of the Levy Institute have written similar things, but the way Mitchell puts the whole story in a tight narrative is on another level (the benefit of discussing this outside an academic paper). I also know this history of course, but I did not connect the dots very well between this episode and the Hartz-reforms. It quite well dispells the myth of ‘German recovery through hardship.’
Anyway, go read it, you will end up wiser and will wonder why they didn’t chuck the rules out already in 2003. Oh wait, that would be admitting failure by the political elite.