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the New Economy Ticker
The latest news, debates, proposals and developments on new economic thinking at a glance.
Beyond Deliverism – Essay
Alexander Hertel-Fernandez, Democracy Journal, 20.03.2025
What we need is policymaking as power-building. It is related to deliverism — but goes way beyond it.
Will the US Drill Its Way to Energy Obsolescence? – Article
Emily Hardy, Dan Helmeci, Internationale Politik Quarterly, 26.03.2025
US President Donald Trump demands energy dominance yet threatens to derail years of joint US-EU progress on clean energy manufacturing.
What’s the point of fiscal rules? – Article (Paywall)
Martin Sandbu, Financial Times, 27.03.2025
Don’t let the budget rule tail wag the democratic dog.
The redistribution from young to old must end – Article
A column by Marcel Fratzscher, ZEIT ONLINE, 21.03.2025
The paradigm shift in debt and investment must not be at the expense of the younger generation. Baby boomers must also be prepared to make more sacrifices.
So many people earn more – and less – than you – Article
Tamara Flemisch, Dana Hajek, Jurik Caspar Iser and Benja Zehr, ZEIT ONLINE, 25.03.2025
Our interactive calculator shows where you stand with your income compared to the rest of the population. And which class you really belong to.
EU plans countermeasures ‘with maximum effect’: Trump announces tariffs of 25 per cent on car imports – Article
Tagesspiegel, 27.03.2025
Until now, European tariffs on US cars have been higher than vice versa. Donald Trump now wants to change this and is planning punitive tariffs on cars – including those from the EU and therefore from Germany.
Simplification Promised, Uncertainty Delivered – Blogpost
Alice Bertram, Verfassungsblog, 20.03.2025
How the EU Omnibus Packages Roll Back the Green Deal.
Can the dollar remain king of currencies? – Article (Paywall)
Barry Eichengreen, Financial Times, 22.03.2025
The greenback’s dominance was forged on trade, alliances and institutions — now that era is at risk of drawing to a close
Why the Maga mindset is different – Article (Paywall)
John Burn-Murdoch, Financial Times 07.03.2025
US decisions can no longer be analysed using assumptions shared across the democratic west
The shattered American dream – Article
Marlies Murray, IPG-Journal, 25.03.2025
The MAGA movement now needs a progressive vision of the future – bold, systemic, popular.
Canada as a role model: Five points for sustainable migration – Article
Naika Foroutan, Harald Bauder, Ratna Omidvar, Blätter für deutsche und internationale Politik, 03/2025
Driven by the AfD, which is using the recent attacks by asylum seekers to demand ever more stringent migration policies, Germany is currently slipping into an actionist policy of isolationism that ignores all expertise from business and science. For years, this has prevented Germany from setting a new course in migration policy that is urgently needed.
A historical experiment – Article (Paywall)
A commentary by Mark Schieritz, ZEIT ONLINE, 18.03.2025
The new financial package is the biggest economic policy test in Germany’s post-war history. Now it is important that the government does not make any mistakes.
This is how much room for manoeuvre Friedrich Merz now has – Article (Paywall)
An analysis by Jurik Caspar Iser, ZEIT ONLINE, 21.03.2025
The way is clear for hundreds of billions of euros in new debt. The next government will have to save more than expected. But there are additional options.
Out of the debt brake maze – Article (Paywall)
Philippa Sigl-Glöckner, Surplus Magazine, 19.03.2025
The amendment to the Basic Law makes the debt rules even more complex. What is needed now is a reform of the debt brake that offers more clarity and room for manoeuvre.
Is this the end of the German debt delusion? – Article
Katharina Pistor, Der Standard, 17.03.2025
Germany finally wants to relax the debt brake. But another taboo should be dropped: the aversion to monetary financing. What is needed is an ‘anti-fascist economic policy’.
Without a real industrial policy, RearmEurope is just a massive redistribution programme – Article
A commentary by Francesco Saraceno, Makronom, 19.03.2025
With RearmEurope, the EU Commission wants to push ahead with rearmament and secure Europe’s strategic autonomy.However, in its current structure, the programme would increase the pressure on member states to make savings and threaten future investments.
Why the next German government should also strengthen Germany’s soft power – Article
Svea Koch & Niels Keijzer, Makronom, 18.03.2025
The coalition negotiations are focussing on Germany’s military ‘hard power’ – probably at the expense of development cooperation. The next government would thus be making a strategic mistake and weakening its global position.
A Defining Moment for Energy Security and Economic Prosperity – Article (Paywall)
Gaston Browne, Project Syndicate, 21.03.2025
Thanks to innovations in AI and battery technology, most developing economies will have outgrown their need for gas within a decade. So, rather than get locked into 30-year “bridging” contracts with fossil-fuel companies, these countries must go all in on the clean-energy transition – with the international community’s help.
Trump’s Economics—and America’s Economy – Article
James K. Galbraith, The Nation, 19.03.2025
You can’t make America great again by wrecking the government.
Will anybody buy a ‘Mar-a-Lago accord’? – Article (Paywall)
Martin Wolf, Financial Times, 18.03.2025
The US president wants both to protect domestic manufacturing and hold the dollar as the reserve currency.
‘Germany is serious about Europe’s security’ – Article (Paywall)
Johannes Pennekamp, FAZ, 14.03.2025
Following the agreement between the CDU/CSU, SPD and Greens on a billion-euro bailout, economists Fuest, Schularick and Südekum, who were instrumental in preparing the plans, tell the F.A.Z. what they think of the result.
Rather shunting stations than no stations at all – Article (Paywall)
A column by Mark Schieritz, ZEIT ONLINE, 12.03.2025
The Greens and conservative economists are warning against too much debt. But we can afford to borrow more. Europe has a historic opportunity that it must seize.
Climate protection doesn’t stand a chance against the military – Article (Paywall)
A guest article by Tom Krebs and Isabella Weber, ZEIT ONLINE, 13.03.2025
Tanks instead of e-cars and wind turbines: the planned relaxation of the debt brake prioritises armament. This is radical military Keynesianism with fatal consequences.
Germany can spend almost €2tn without harming growth, economists say – Article (Paywall)
Olaf Storbeck, Financial Times, 10.03.2025
FT survey finds ‘large fiscal capacity’, but economists urge would-be chancellor Friedrich Merz to spend funds wisely.
Anything but arbitrariness – Article (Paywall)
Heike Buchter, ZEIT ONLINE, 11.03.2025
Donald Trump and his team want to reorganise the global trade and financial system with the Mar-a-Lago Accord. The plan could cause the global economy to crash.
Instead of flowers, we need higher salaries and an end to the ‘econ boys club’ – Article (Paywall)
Maxine Fowé, Surplus, 08.03.2025
Male dominance in economics has consequences. It worsens the situation of women everywhere.
Future-Proofing Social Protection – Article (Paywall)
Florian Juergens-Grant and Luca Pellerano, Project Syndicate, 11.03.2025
The move from productive to financialized capitalism and the rise of digital technologies, automation, and artificial intelligence, together with demographic change, could erode the foundations of social protection. To ensure that all firms pay their fair share, policymakers must rethink the composition and structure of contributions.
Europe Must Break Free from Its Digital Dependence – Artikel (Paywall)
Cristina Caffarra, Project Syndicate, 08.03.2025
The European Union’s digital policy has focused almost exclusively on regulating apps and services, leaving it dangerously dependent on US tech giants and unable to compete globally. Recognizing that the status quo is unsustainable, business leaders are now leading efforts to secure the bloc’s digital future.
What Should Be on the Global Financial Agenda? – Artikel (Paywall)
José Antonio Ocampo, Project Syndicate, 25.02.2025
In the face of high public-sector indebtedness, environmental and geopolitical breakdown, and other mounting problems, global consensus-building to support development institutions and developing countries’ growth strategies is more important than ever. The international community must set its priorities accordingly.
The Real Economy – Essay
Jonathan Levy, Phenomenal World, 11.03.2025
Methodological imperialism and the science of wealth.
Germany’s ‘whatever it takes’ spending push to end years of stagnation – Article (Paywall)
Olaf Storbeck and Laura Pitel, Financial Times, 06.03.2025
Europe’s largest economy could return to pre-pandemic growth trend.
‘Real turning point’: Economists praise debt brake reform and special funds from the CDU/CSU and SPD – Article
Ulrike Hagen, Frankfurter Rundschau, 06.03.2025
CDU/CSU and SPD are putting together a 500 billion euro package for infrastructure and defense, including a relaxation of the debt brake. Economists praise the measure, but also warn of potential risks.
Südekum: ‘Now the exciting economic policy begins’– Article (Paywall)
Jens Südekum in an interview with Lukas Scholle, Surplus Magazine, 06.03.2025
Economist Jens Südekum helped develop the CDU/CSU and SPD investment package. In this interview, he explains what is now important in terms of economic policy.
Wealth inequality is fuelling financial crises – Article (Paywall)
Xhulia Likaj, 04.03.2025, Surplus Magazine
Increasing wealth inequality is not only a threat to democracy. It is also fuelling financial crises.
A bazooka for Friedrich Merz – Article (Paywall)
Mark Schieritz, ZEIT Nr. 10/2025, 05.03.2025
Some decisions change the country for a long time. The agreement between the CDU/CSU and SPD on previously unimaginable loans and a different debt brake could be one of them.
Climate researchers call for further reform of the debt brake – Article (Paywall)
Michael Sauga, Spiegel, 06.03.2025
Despite the agreement between the CDU/CSU and SPD, the Potsdam Institute for Climate Research is in favour of a modified debt brake: higher loans should be made dependent on progress in the fight against global warming.
This is what a climate-friendly debt rule could look like – Article
Jonas Waack, TAZ, 04.03.2025
Climate falls behind in the black-red proposal to reform the debt brake. A think tank suggests how things could be better.
Bundesbank drafts a possible reform of the debt brake – Article
Spiegel, 04.03.2025
Where will the money come from that is needed for the Bundeswehr, infrastructure or Ukraine? While Friedrich Merz seems to be focussing on special funds, the Bundesbank is proposing something else.
What a reform of the debt brake would bring – Policy Brief
Tom Krebs, Böckler-Impuls, 04.03.2025
The debt brake slows down public investment – and thus harms the country’s future. A small but significant adjustment could alleviate the problems.
Tariffs are not going to solve America’s ills – Article (Paywall)
Maurice Obstfeld, Financial Times, 04.03.2025
Punitive import duties will neither reduce the US trade deficit nor boost employment in manufacturing.
Resisting the Empire of Fossil Fuels – Article
Laurence Tubiana & Emmanuel Guérin, Le Grand Continent, 04.03.2025
A Strategy For COP30 in Lula’s Brazil.
Europe’s Powerful Tool Against Russia – Article (Paywall)
Andrew Kosenko and Joseph E. Stiglitz, Project Syndicate, 04.03.2025
If European leaders want to follow through on their statements in support of Ukraine following America’s betrayal of the country, they must seize the moment by seizing Russia’s assets. Europe has become the world’s bulwark against the rising tide of authoritarianism, and it can no longer afford to hide behind legalistic excuses.
‘The debt brake should be reformed now’ – Article
Interview: Marlies Uken and Zacharias Zacharakis, Die ZEIT, 26.02.2025
Economist Monika Schnitzer argues in favour of changing the debt regulation with the old Bundestag. There is great urgency because of Donald Trump’s policies.
Germany’s election victor must ditch its debt rules — immediately – Article (Paywall)
The Economist, 24.02.2025
Friedrich Merz has weeks to shore up his country’s defences.
Von der Leyen plans EU special fund for defence – Article (Paywall)
Jakob Hanke Vela, Handelsblatt, 26.02.2025
The EU Commission President warns of a ‘revanchist Russia’ and wants to arm Europe with an immediate programme – with integrated EU air defence, drones and military AI.
‘A special defence fund will not solve the problem’– Article (Paywall)
Philippa Sigl-Glöckner in interview with Benjamin Ansari, Handelsblatt, 28.02.2025
The debt brake remains one of the contentious issues on the way to a new federal government. SPD-affiliated economist Philippa Sigl-Glöckner explains what a reform could look like.
Europe can rearm without making savings elsewhere – Article
André Kühnlenz, Finanz und Wirtschaft (FuW), 25.02.2025
Europe’s interest rates are outstripping those of the US, investors are bracing themselves for higher debt to arm the continent. Switzerland and the UK could also co-operate with the EU.
What European Security Requires – Article (Paywall)
Laurence Tubiana, Project Syndicate, 26.02.2025
In European policymaking circles nowadays, there is talk of prioritizing competitiveness, defense, and stability over ambitious climate goals. But to abandon the European Union’s green-transition strategy would be a grave economic mistake.
Five takeaways from Germany’s historic election — in charts – Article (Paywall)
Anne-Sylvaine Chassany, Martin Stabe and Jonathan Vincent, Financial Times, 24.02.2025
Non-voters and young people turned out for the AfD and far left, depriving the CDU of an enthusiastic mandate.
Austerity Is Back – and More Dangerous Than Ever – Article (Paywall)
Mark Blyth, Project Syndicate, 25.02.2025
A decade and a half after the global financial crisis, austerity has returned. But this time it is not just an economically dangerous idea that promises to make a bad situation worse; in the hands of Elon Musk and Argentine President Javier Milei, it is also a political weapon and a redistributive tool.
Germany can turbocharge Europe’s renewal – if it will only seize this moment – Article
Timothy Garton Ash, The Guardian, 26.02.2025
Three times in the postwar era Germany made strategic choices that benefited Europe – with the US at its side. Now it must do it in opposition to Trump.
US raw materials colony? Trump offers Ukraine this deal – Article (Paywall)
Moritz Koch and Mareike Müller, Handelsblatt, 25.02.2025
The new US administration wants to be compensated for its support of Ukraine. A current draft for a controversial reconstruction fund has been submitted to Handelsblatt.
Higher US car tariffs could hit German steel industry hard – Article
Der Spiegel, 28.02.2025
Germany’s steel industry is already in crisis. If US President Donald Trump now also imposes higher car tariffs, there is the threat of a further setback: the vehicles contain a lot of steel from Germany.
‘We still have the chance to successfully modernise the industry’ – Article (Paywall)
EU Commissioner Teresa Ribera in interview with Jan Diesteldorf and Josef Kelnberger, Süddeutsche Zeitung, 26.02.2025
Teresa Ribera is one of the most powerful women in Europe. The Spanish socialist is tasked with defending Europe’s climate policy and at the same time helping the economy. That, she says, is no contradiction at all.
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.