Europe
beyond markets
EUROPE
BEYOND MARKETS
The euro was planned during a period in which economic policy making was driven by a deep belief in market liberalism and the near impossibility of systemic financial crises. This belief has been brought into question since the euro crisis, which showed that panics do happen. New thinking needs to focus on developing mechanisms to protect eurozone countries from such panics and to foster economic convergence between members.
LATEST NEWS
Lessons from the inflation shock: New Economy Short Cut with Jérôme Creel and Peter Bofinger
Lessons from the inflation shock: New Economy Short Cut with Jérôme Creel and Peter Bofinger
KNOWLEDGE BASE
EUROPE
BEYOND MARKETS
The Challenge
The ECB’s continuing program of bond purchases and its emergency lending to struggling banks show the underlying instability of the eurozone.
What Went Wrong
A deep belief in self-regulating markets and market-driven integration failed to lead to convergence. It instead led to divergence and major imbalances.
New Economy in Progress
New research focuses on the policies – macroeconomic, institutional and regulatory – needed to ensure convergence, prevent shocks and improve crisis management.
5 WAYS THAT ARE DISCUSSED TO STRENGTHEN EUROPE
UNEMPLOYMENT RATES IN EUROPE (%, AVAILABLE WORKFORCE), 1995 - 2018
Lessons from the inflation shock: New Economy Short Cut with Jérôme Creel and Peter Bofinger
What could better EU debt rules look like? Short Cut with J. Zettelmeyer and A. Truger
For more than two years now, the EU debt rules have been suspended, which in the eyes of many critics had long been ineffective anyway. We spoke with Jeromin Zettelmeyer and Achim Truger about the latest reform proposals of the EU Commission and the Council of Economic Experts.
Short Cut on the Reform of EU Fiscal Rules With A. Truger and J. Zettelmeyer
What Would a Populist Government Mean for Italy and the Euro? Short Cut with Lucio Baccaro and Holger Schmieding
According to polls, Italians will elect a right-wing coalition in less than ten days. Would such a populist government lead Italy into a new debt crisis? We talked about this with Holger Schmieding and Lucio Baccaro.
What Would a Populist Government Mean for Italy and the Euro?
French Presidential Election - Will the Right Lose Because of Putin?
Cornelia Woll, Moritz Schularick, Anne-Laure Delatte and Shahin Vallée discussed this question in our New Economy Short Cut on April 1.
Towards new fiscal rules for the euro zone?
Prominent French economists around Macron have written a reform proposal for the European Stability and Growth Pact and have discussed it at the VIII. New Paradigm Workshop.
Preview: Should Germany issue perpetual bonds for European solidarity? - Discussion of the proposal by George Soros
On December 4 at 4 pm CET, INET and the Young Scholars Initiative will host a discussion on the future of European fiscal capacity.
OTHER MAIN TOPICS
New Paradigm
NEW PARADIGM
After decades of overly naive market belief, we urgently need new answers to the great challenges of our time. More so, we need a whole new paradigm to guide us. We collect everything about the people and the community who are dealing with the question of a new paradigm and who analyze the historical and present impact of paradigms and narratives – whether in new contributions, performances, books and events.
Redefining
the role of
the state
REDEFINING
THE ROLE OF
THE STATE
For decades, there was a consensus that reducing the role of the state and cutting public debt would generate wealth. This contributed to a chronic underinvestment in education and public infrastructure. New research focuses on establishing when and how governments need to intervene to better contribute to long-term prosperity and to stabilize rather than aggravate economic fluctuations.
Remaking
finance
REMAKING
FINANCE
More than a decade after the financial crisis there still seems to be something seriously wrong with the financial system. Financial markets still tend to periodically misprice risk and contribute to boom and bust cycles. A better financial system needs to discourage short-termism and speculative activity, curtail systemic risk and distribute wealth more broadly.
Greening
prosperity
GREENING
PROSPERITY
During the high point of market orthodoxy, economists argued that the most 'efficient' way to combat climate change was to simply let markets determine the price of carbon emissions. Today, there is a growing consensus that prices need to be regulated and that a carbon price on its own might not be enough.
Reducing
inequality
REDUCING
INEQUALITY
The rising gap between rich and poor has become a threat to social cohesion in most rich countries. To reverse this trend it will be crucial to better understand the importance of different drivers of income and wealth inequality.
Innovation Lab
INNOVATION LAB
Do we need a whole new understanding of economic growth? What would be a real alternative? How viable are alternatives to GDP when it comes to measuring prosperity? These and other more fundamental challenges are what this section is about.
Globalization
for all
GLOBALIZATION
FOR ALL
After three decades of poorly managed integration, globalization is threatened by social discontent and the rise of populist forces. A new paradigm will need better ways not only to compensate the groups that have lost, but to distribute the gains more broadly from the start.
Corona Crisis
CORONA CRISIS
The current Corona crisis is probably the worst economic crisis of the post-World War 2 era. Economists are working hard on mitigating the economic effects caused by COVID-19 to prevent a second Great Depression, the break-up of the Eurozone and the end of globalisation. We collect the most important contributions.