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the New Economy Ticker
The latest news, debates, proposals and developments on new economic thinking at a glance.
The looming battles over US economic policy thinking – Article (Paywall)
Martin Sandbu, Financial Times, 09.01.2025
Both Republicans and Democrats are split between populist and oligarchic visions.
The Economic Consequences of Trump 2.0 – Article (Paywall)
Simon Johnson, Project Syndicate, 03.01.2025
The US president-elect’s signature policies will do almost nothing positive for less educated Americans or significantly improve the lives of most others. The rich will get richer, the richest will get a lot richer, and everyone else will contend with higher inflation, cuts to public services, and the effects of runaway deregulation.
We should finally take Thomas Piketty seriously – Article
Hans-Jörg Naumer, Makronom, 18.12.2024
If we do not finally take action and promote wealth creation policies more strongly, the unequal distribution of capital and opportunities will remain cemented.
Polycrisis & the critique of capitalocentrism – Blogpost
Adam Tooze, Chartbook 343 Substack, 06.01.2025
A world at “loose ends” mini-series # 1.
Selling Power: The design of energy finance, from the New Deal to the IRA – Blogpost
Sandeep Vaheesan, Phenomenal World, 08.01.2025
President Joe Biden began his term with Rooseveltian ambitions. Perhaps the most exemplary were those to remake the electric power industry.
Back to utopia: Elon Musk, Karl Mannheim and the crisis of liberalism – Blogpost
Carlotta Voß, Politik & Ökonomie Blog, 05.01.2025,
Almost 100 years ago, Karl Mannheim also made the diagnosis of the exhaustion of liberalism for the present day. His analysis is worth re-reading – also because it can help to counter the libertarian-authoritarian occupation of the liberal tradition.
Completely tangled up – Article
Patrick Bahners, FAZ, 06.01.2025
Veronika Grimm firmly criticises the critics of ‘Welt’ guest commentator Elon Musk. The economist argues in favour of free speech, but behind the libertarian slogans a strange dirigisme comes to light.
Gerhart Baum: “That’s just crazy!” – Interview (Paywall)
Interview by Georg Löwisch, ZEIT Online, 05.01.2025
Former Interior Minister Gerhart Baum once helped build the FDP. Here he talks about his legacy, a fury called fear and Lindner’s attempts to get closer to Elon Musk.
Isabella Weber: Five anti-fascist economic proposals to stop the shift to the right – Interview (Paywall)
Interview by Nina Scholz, der Freitag, 16.12.2024
Shaken by Donald Trump’s election victory, Isabella Weber calls for an anti-fascist economic policy. Here, the economist explains which proposals work in concrete terms to make society more social and peaceful.
How a reorientation of the debt brake could solve the budget crisis – Article
Katharina Bews, Frankfurter Rundschau, 11.12.24
The failure of the Ampel coalition in the budget dispute shows the enormous discrepancies in the debate on debt reform. An economist presents a solution that could benefit both camps.
SPD plans far-reaching reform of the debt brake – Article (Paywall)
Christian Teevs, SPIEGEL Plus, 13.12.2024
The SPD was defeated by the FDP in the ‘Ampel’ coalition, but now the party is taking the issue into the election campaign: according to SPIEGEL, the Social Democrats want to make massive changes to the debt rule.
This is how much debt Germany is really allowed to incur according to EU rules – Article (Paywall)
Martin Greive und Carsten Volkery, Handelsblatt, 13.12.2024
A reform of the debt brake makes no sense because the new EU rules are so strict, say some economists. A recent study comes to a different conclusion.
(Click here for the study.)
What is freedom? – Article (Paywall)
Caterina Lobenstein, DIE ZEIT, 11.12.24
The world collapsed twice for philosopher Lea Ypi. First she saw communism fail, then capitalism drove her home country of Albania into civil war. Today, she has an idea of how Western democracy could be saved.
‘Musk and Milei form a catch basin for the politically homeless’ – Article (Paywall)
Interview: Nils Markwardt, 12.12.24, ZEIT ONLINE
Christian Lindner wants to orientate himself more towards Elon Musk and Javier Milei. But there is something apocalyptic about their behaviour, says sociologist Carolin Amlinger.
Did Neoliberalism Kill American Democracy? – Article (Paywall)
Project Syndicate Big Picture, 06.12.2024
As US President-elect Donald Trump prepares to make good on his threats to upend American institutions, the pressure is on his opponents to figure out how to defend, and eventually strengthen, US democracy. But first they must understand how the United States reached this point.
The Crisis that Germany Needs – Article (Paywall)
Barry Eichengreen, Project Syndicate, 10.12.2024
There is a profound mismatch between Germany’s current economy and its institutional inheritance from the postwar period. If the current crisis prompts a wholesale rethink of that inheritance, the logjam blocking necessary reforms could finally be broken.
Democrats’ problem with working-class voters is bigger than free trade – Article (Paywall)
Eric Levitz, Vox, 13.12.2024
Most American workers have benefited from globalization. Democrats are losing ground with them anyway.
Tariffs are a misunderstood tool – Article (Paywall)
Michael Pettis, Financial Times, 13.12.2024
Debate over trade strategy has become an ideological litmus test in which few are willing to acknowledge nuance.
The chain of contradictions in Trump’s economic policy – Article (Paywall)
Gillian Tett, Financial Times, 13.12.2024
His team is promising high growth, low inflation and control of government spending — all at once.
Successful Industrial Policy Requires Industrial Experts – Article (Paywall)
Diane Coyle, Project Syndicate, 10.12.2024
Policymakers must move beyond the vague rethoric about national strengths that characterizes the current policy debate and instrad focus on specific products, services and technologies for which their countries have a poroven comparative advantage. Industry-specific expertise is essential for any successful industrial policy.
The Missing Monetary-Policy Tool – Article (Paywall)
Johannes Boehm and Xavier Jaravel, Project Syndicate, 16.12.2024
Central Banks should prepare to carry out direct transfers to households when conventional monetary policy fails.
Why Bidenomics Did Not Deliver at the Polls – Article (Paywall)
Dani Rodrik, Project Syndicate, 04.12.2024
By focusing so much on manufacturing, old-style union power and worker organizations, and geopolitical competition with China, the Biden administration paid too little attention to the changing structure of the economy and the interests of the new working class. It had the right intentions, but the wrong strategy.
Why Bidenomics Was Such a Bust – Article
James K. Galbraith, The Nation, 09.12.2024
A large majority of voters gave the Biden administration a failing grade on the economy. For the sake of future policy battles, it is worthwhile to try to understand their reasons.
Don’t Give in on Economics – Article
Felicia Wong, Democracy Journal, 22.11.2024
We’ve gotten far more right than wrong on economics, but we need to build a political economy in which voters can see themselves.
Trump, Tariffs, and Exchange Rates: The Message of Elections in the US and Japan – Article
Richard Koo, INET, 02.12.2024
What Japan, the US, and Europe have in common is growing popular anger over the economy despite high stock prices and low unemployment.
Europeans need to learn some lessons about power — and fast – Article (Paywall)
The world has changed, but the EU’s worldview hasn’t changed with it
Rana Foroohar, Financial Times, 09.12.2024
IfW: An inflation shock favours political extremes – Article (Paywall)
Patrick Welter, FAZ, 04.12.2024
Previously the NPD, now the AfD: if real wages lag behind prices in an economic crisis, more people vote for extreme parties. This is shown by a study by the Kiel Institute for the World Economy.
Bundesbank head Nagel in favour of reforming the debt brake – Article
04.12.2024, ZEIT Online
In view of the economic situation, Bundesbank president Nagel is calling for room for manoeuvre for defence and investment spending. He is in favour of a reform of the debt brake.
How Democrats Can Regain the Working Class – Article
Harold Meyerson, The American Prospect, 02.12.2024
It’s time to go after the nation’s real elite—not the Republicans’ largely fictitious one.
The Democrats’ Only Option – Article (Paywall)
Joseph E. Stiglitz, Project Syndicate, 27.11.2024
Although a variety of factors seem to have contributed to Donald Trump’s victory in this year’s US presidential election, the message for the defeated Democrats is clear. The party must abandon neoliberalism and return to its progressive roots in the presidencies of Franklin D. Roosevelt and Lyndon B. Johnson.
Why Scott Bessent could be Trump’s James Baker – Article (Paywall)
Shahin Vallée, Financial Times, 25.11.2024
The next president’s choice as Treasury secretary may find a way to place Maga economic policy in a co-operative international framework.
Back to the future – Article (Paywall)
Mariam Lau und Marc Widmann, ZEIT, 01.12.2025
How the CDU wants to help the economy get back on its feet with a classic regulatory policy, more trust in the market and pragmatism that is compatible with the table.
The federal government is investing in the future – but often only in theory – Article
Claus Hulverscheidt, Süddeutsche Zeitung, 01.12.2024
The coalition government had repeatedly claimed that federal investment in important areas of the future was at a record level. A study shows: This is true in theory – but not quite so in reality.
From the sword of democracy to the wooden cooking spoon – Article
Martyna B. Linartas, Makronom, 02.12.2024
Inheritance tax was once created to protect democracy. But in its current form, it privileges the wealthy – and reduces the principle of merit to absurdity. An article by Martyna B. Linartas.
How the neoliberal turnaround in tax policy came about – and what needs to be done now – Article
Marc Buggeln, Makronom, 25.11.2024
Taxes have made history: as a trigger for revolutions, a tool for social reform and a symbol of injustice. Can they once again become the key to greater justice in times of growing global challenges? An article by Marc Buggeln.
How do we get out of this?– Article
Mark Schieritz, ZEIT, 23.11.2024
There is a huge gaping hole in the federal budget. No matter who governs in the future – the billions will continue to be lacking. That is why Chancellor Olaf Scholz and his challenger Friedrich Merz are already thinking about where they can find new money.
Citizens want a return to a strong state – Article
Tina Groll, ZEIT Online, 21.11.2024
People in Germany do not believe that the market alone should regulate the economic turnaround, a study shows. They would like more support from the state.
Only a different economic policy can help against the AfD – Article
Guest article by Isabella Weber, ZEIT Online, 23.11.2024
The federal government must no longer ignore the financial needs of citizens, as the US election shows. Otherwise populists will win. The state must intervene more strongly.
Harris ran from the Biden policies that were actually popular with voters – Article
Guest article by Daniela Gabor, The Guardian, 20.11.2024
The Harris campaign dumped Biden’s FDR-style ambitions for boring neoliberal policy planks that were an electoral dead-end.
Capitalism Is Driving Democracy’s Death Spiral – Article
Guest article by Katharina Pistor, Project Syndicate, 15.11.2024
The post-election blame game in the United States will not only tear apart the Democratic Party, but will also distract from the elephant in the room. Democracy has been eroded by a socioeconomic regime that puts price signals above people’s needs, undermining the capacity for consensus and collective decision-making.
Market liberalism as the cause of a policy of destruction – Article
Guest article by Tom Krebs, Makronom, 21.11.2024
With the traffic light coalition, a socio-political experiment has failed magnificently after three years of experimentation. The underlying reason is that market liberalism and social democracy are two incompatible social concepts. An article by Tom Krebs.
The return of the techno-libertarians – Article (Paywall)
Rana Foroohar, Financial Times, 25.11.2024
Silicon Valley billionaires are selling a dream of unfettered markets — but reality is not so certai
It’s prices stupid: how inflation targeting has failed electorates – Article (Paywall)
Ian Harnett, Financial Times, 25.11.2024
It may well be time for governments and central banks to revisit their monetary policy mandates.
„It’s the economy, stupid!“: Wie stark werden wirtschaftliche Sorgen die Bundestagswahl entscheiden? – Article (Paywall)
Albrecht Meier, Tagesspiegel, 18.11.2024
In the USA, ‘bread and butter issues’ were decisive in the presidential election in the end. Experts analyse that the German federal election on 23 February could be similar.
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.