Article overview
Simons Blog: Why this crisis will bring about a new economic settlement
Policymakers reverted to the status quo after the last recession. This time must be different.
Stabilisation in the crisis: ESM versus Eurobonds
How to ensure the necessary fiscal flexibility for EU-countries? Leading economists debate whether the financing of government action should be ensured through the ESM or joint Eurobonds.
Romer & Garber: How to prevent the economy from dying?
The corona-pandemic has emerged from a health crisis into an economic crisis with looming supply and demand shocks. Nobel prize winner Paul Romer and Alan Garber from Harvard University have laid out a plan to deal with the crisis.
A Systemic Approach to Dealing with Covid-19 and Future Shocks
Our partners at the OECD view the corona crisis as a reason to systematically strengthen the resilience of our economic and social system.
Peter Bofinger: The time for MMT is now
The corona-crisis calls for a "whatever it takes" response on a fiscal level. Peter Bofinger argues that the Modern Monetary Theory gives theoretical justification for such an answer.
OECD (NAEC) Conference – Integrative Economics
On March 5-6, 2020 our partner organization NAEC at the OECD hosted a conference on “Integrative Economics”. The event featured epidemiologist Joshua M. Epstein, Nobel Prize laureate James Heckman and many others.
Robert Shiller on Narratives and the Next Paradigm
Narratives are still underrepresented in economic research. Robert Shiller wants that to change and points to the huge influences in economic developments fueled by narratives.
Shiller on Corona-Panic – Better to shut down financial markets?
The Corona crisis has led to panic in the financial markets. Asset prices in some cases fell even lower than at the time of the financial crisis in 2008, which is why Nobel Prize winner Robert Shiller says that one should also think about temporarily suspending the markets.
Coronavirus Means Zero Hour for the European Union
Tom Ferguson (INET) and Edward Kane (Boston College) warn that the EU could collapse if its institutions repeat the mistakes of the Euro crisis.
Robert Shiller on Epidemics of Narratives – and the Corona-Crisis
Nobel prize laureate Robert Shiller is the expert when it comes to narratives in economics. We had the chance to talk to him this monday in an exclusive Forum New Economy seminar about his new book, important narratives and the parallels to the current crisis.
The Distribution of Wealth in Germany, 1895 to 2018
A new study by Thilo Albers, Charlotte Bartels and Moritz Schularick for the first time assesses the long-run evolution of wealth inequality in Germany.
Economic policy in the Corona crisis: Making the most of a crisis?
Covid-19 has paralyzed the global economy. What does this mean for Germany’s unprecedentedly internalized industrial sector? Here we give an overview of the economic policy implications.
IfW Kiel on the EU Financial Transaction Tax: “Instrument suitable, proposed implementation flawed”
According to a recent German-French proposal, a financial market transaction tax (FTT) on the purchase of securities is to be introduced in 10 EU countries. In their study, the authors of the Kiel institute for the world economy compare this proposal in an international perspective and develop policy recommendations.
OUR 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.
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.
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.