Article overview
Central banks to the rescue? Is this the time for helicopter money?
Corona Workshop: Over the last four decades central banks have been almost exclusively mandated with the task of macroeconomic stabilization. Can they still do their job? We discussed this with Eric Lonergan, Martin Hellwig, Peter Bofinger and Daniela Gabor.
Introduction to The Corona Economic Shock
Introductory remarks by Thomas Fricke and Gerhard Schick on the state of the economy and a plan to cope with the crisis at the Forum Corona workshop.
Eurozone – Time for Eurobonds?
Corona Workshop: A summary of the session "Eurozone - is this the time for Eurobonds?" (Video included) during our Corona Economic Workshop on 22 April. Simon Tilford has assembled quotes and analyzes the discussion during the session.
The Corona Crisis - Is this the time for Helicopter Money?
Marc Adam explains the concept of helicopter money and analyzes the discussion around it. Input for the session on central bank action during the corona crisis.
Economists against Euro-Agreement
In Italy, 101 economists have recommended that the government simply should not agree to the latest Eurogroup proposals. A documentation.
One Policy is not Enough – Proposals for the EU
What is the EU's coherent response to the Corona crisis? For days the advantages of the ESM or Euro-bonds have been discussed. In the meantime there is a consensus that a single measure will not suffice.
The Conflict of Interest on the Financial Market in Europe
How far can policymakers stretch the mandate of the ECB? Right now the central bank seems to be the institution burdened with organizing European solidarity. Erik Jones gives a detailed look into the current developments and explains how the banking sector functions.
Maja Göpel: A Social-Green Deal as the Answer
Maja Göpel puts an end to three formerly dominant narratives that determined the economy. For her, the way out of the crisis must be a social-ecological one, which must be tangible for the people.
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.
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.