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the New Economy Ticker
The latest news, debates, proposals and developments on new economic thinking at a glance.
Good old Europe is making a comeback – Artikel (Paywall)
Zacharias Zacharakis, DIE ZEIT, 26.05.2025
Largely unnoticed by the public, an economic upturn is creeping up on us. Europe is benefiting from the turmoil in the USA and from suppressed opportunities.
ECB’s Lagarde pitches euro alternative to dollar in ‘fracturing’ world – Artikel
Euractiv, 26.05.2025
The retreat of the US dollar could “open the door for the euro to play a greater international role”.
Klingbeil plans record investments of 110 billion euros – Artikel (Paywall)
Jan Hildebrand, Handelsblatt, 27.05.2025
The finance minister wants to increase investments by 46 percent this year. An unprecedented increase. But his calculation has a crucial catch.
This is the CV of Lars Klingbeil’s new chief economist – Artikel (Paywall)
Jan Hildebrand, Moritz Koch, Handelsblatt, 23.05.2025
Finance Minister Klingbeil makes Steinbach his chief economist. He was previously a professor in Paris, but also has government experience. A tricky problem case awaits him at the ministry.
A beautiful law and an ugly truth – Artikel (Paywall)
Heike Buchter, DIE ZEIT, 22.05.2025
Donald Trump calls his plan to cut taxes the Big Beautiful Bill. But the bill would lead to major upheaval in the country. Even his supporters see it that way.
US hands victory to China in gutting green energy tax breaks, IRA architect says – Artikel (Paywall)
Attracta Mooney, Financial Times, 23.05.2025
Former Biden top adviser predicts jobs and projects in Republican states will suffer.
Wage Stagnation and Populism: A Comment on David Brooks and Noah Smith – Blogpost
James K. Galbraith, 27.05.2025, INET
Times have changed. Now we have David Brooks, of The New York Times, and economics blogger Noah Smith defending neoliberal globalization from the pincer movement of anti-trade populists from both the right and the left.
‘Outdated and unjust’: can we reform global capitalism? – Artikel
John Cassidy, The Guardian, 08.05.2025
President Trump’s tariffs have plunged the world economy into chaos. But history counsels against despair – and the left should seize on capitalism’s crisis of legitimacy.
The new BlackRock capitalism – Article (Paywall)
Essay by Georg Diez and Aris Komporozos-Athanasiou, DIE ZEIT, 19.05.2025
Friedrich Merz worked for BlackRock, the world’s most powerful asset manager, for four years. This industry is changing Western democracies forever.
Reiche continues her reorganization of the Ministry of Economics – Article (Paywall)
Julian Olk, Handelsblatt, 14.05.2025
The new Federal Minister for Economic Affairs is reassigning various department heads – with some surprising names. Only one position is still unclear.
Debt package: Eurobonds are needed now – Article (Paywall)
Marina Guldimann and Carl Mühlbach, Surplus Magazine, 13.05.2025
Friedrich Merz has a problem in Brussels: his debt plans clash with the EU’s fiscal rules. But there is a solution.
Europe should increase its development aid – Article (Paywall)
Jayati Ghosh, Surplus Magazine, 19.05.2025
The USA is cutting its development aid. European countries should step in – also out of geopolitical interest.
What Germany’s Economy Really Needs – Article (Paywall)
Isabella M. Weber and Tom Krebs, Foreign Policy, 14.05.2025
Merz’s Plans for Rearmament and Austerity Won’t Work.
It’s not a rich list – it’s gone far beyond that. We need to talk about ‘extreme wealth’ – Article
Dhananjayan Sriskandarajah, The Guardian, 17.05.2025
We recognise extreme poverty as ruinous, but this turbo-charged affluence iscledeeply damaging too. Treat it as such.
“We lack a real vision for the future” – Article (Paywall)
Stefanie Diemand, FAZ, 09.05.2025
Economist Simon Jäger advised Robert Habeck. Now he criticizes the new government for lacking courage.
From hawk to offender: Berlin’s spending ‘offensive’ saps EU fiscal rule book – Article (Paywall)
Anne-Sylvaine Chassany & Paola Tamma, Financial Times, 12.05.2025
Germany leads efforts to loosen EU debt and deficit caps as it gears up to deploy €1tn.
Economic policy of the German government: Psssst … – Article (Paywall)
Petra Pinzler and Mark Schieritz, Die ZEIT, 10.05.2025
Friedrich Merz has announced a change in policy. But the economic whisperers of the new federal government are old acquaintances.
Why 100 billion euros is not enough for cities – Article
Roland Muschel, Süddeutsche Zeitung, 02.05.2025
The twelve-figure sum is to be given to the federal states and municipalities from the federal infrastructure fund. However, no champagne corks are popping in the state chancelleries and town halls, instead skepticism prevails: What will actually reach the bottom?
Civil servants into retirement? Union rejects SPD proposal – Article, 11.05.2025
The new Minister of Labor Bärbel Bas is calling for civil servants, members of parliament and the self-employed to pay into the pension scheme. This was apparently not agreed with her coalition partner, and the CDU/CSU rejects the idea.
The old global economic order is dead – Article (Paywall)
Martin Wolf, Financial Times, 06.05.2025
China and others must think afresh as the US steps away from its role as balancer of last resort.
Why Didn’t Tariffs Push up the U.S. Dollar? – Blogpost
Brad W. Setser, Council on Foreign Relations, 05.05.2025
Tariffs were supposed to push the dollar up. What happened?
Merz’s billion-euro package could end up as a paper tiger – Article (Paywall)
Handelsblatt, Armin Steinbach & Jeromin Zettelmeyer, 24.04.2025
Merz’s billion-euro package could end up as a paper tiger The infrastructure fund and sharp rise in defense spending violate EU fiscal rules. There is only one way out to change this, explain Armin Steinbach and Jeromin Zettelmeyer.
Germany wants to deviate from EU debt rules by 2028 – Article (Paywall)
Handelsblatt, 28.04.2025
The Bundeswehr is to be upgraded with billions in investment. However, this could put Germany in breach of EU regulations. The German government is therefore asking the Commission for approval.
“Bravo, bravo” – Why Germany is suddenly so popular abroad – Article
Karsten Seibel, WELT, 02.05.2025
During the spring meeting of the International Monetary Fund, foreign countries are celebrating the lax debt policy of the designated government. Expectations are high for Germany as an economic engine from whose investments others expect to profit. But there are some obstacles.
A coalition agreement subject to growth – Article (Paywall)
Rudi Kurz, Makronom, 30.04.2025
The CDU/CSU and SPD are fully committed to economic growth – as a solution to financing problems, social cohesion and military strength. But without a plan B, this is a very risky strategy.
“Infrastructure booster is not enough” – Article (Paywall)
Interview with Volker Wissing by Corinna Budras, FAZ, 27.04.2025
The outgoing Federal Minister of Transport considers the 500 billion euro package to be too small. In four years’ time, he says, it will have to be adjusted. The new speed has its price.
Calculating until it fits – Article (Paywall)
Mark Schieritz, ZEIT, 30.04.2025
The future German government wants to take on billions in new debt. But this could violate EU rules.
The spectre of dollar doomsday still looms – Article (Paywall)
Rana Foroohar, Financial Times, 28.04.2025
Whatever happens with Trump’s tariffs, investors need to prepare for a new market paradigm
The case for Trump’s tariffs – Article (Paywall)
Martin Sandbu, Financial Times, 28.04.2025
The arguments are believed more widely than the Maga camp, but that does not make them any more right.
On Immigration, A Clear and Just Vision Requires Wrestling With Hard Questions – Essay
Cecilia Muñoz, Roosevelt Institute, 29.04.2025
This essay is part of Roosevelt’s 2025 collection ‘Restoring Economic Democracy: Progressive Ideas for Stability and Prosperity’.
The Post-Neoliberal Imperative – Article
Jennifer M. Harris, Foreign Affairs, 22.04.2025
Contesting the Next Economic Paradigm.
Germany’s fiscal rules dilemma – Analysis
Armin Steinbach & Jeromin Zettelmeyer, 24.04.2025
Without further reform, European Union fiscal rules could stop Germany from using the new fiscal space it has freed up for itself.
The upswing is not gaining momentum – Article
Claus Hulverscheidt, Süddeutsche Zeitung, 24.04.2025
Despite the easing of the debt brake, the economic slump is continuing for the time being. According to the outgoing Minister of Economic Affairs, Donald Trump is to blame – and home-made mistakes.
Energy transition can be fun. The government just has to make it possible – Commentary (Paywall)
Nakissa Salavati, Süddeutsche Zeitung, 21.04.2025
How can the energy transition be presented to people as an opportunity? The conditions for this are pretty good. Friedrich Merz can thank Robert Habeck for that.
What to do with all this stuff? – Article
Jens Mühling, DIE ZEIT, 24.04.2025
Trump’s tariffs are making the US market unattractive for Chinese manufacturers. They could move to Europe – and endanger the industry here.
Europe and China Must Unite Against Trump’s Trade Assault – Commentary (Paywall)
Marcel Fratzscher, Project Syndicate, 22.04.2025
Europeans’ refusal to push back hard against US President Donald Trump’s tariffs has played into the US administration’s hands. EU leaders urgently need to devise a new strategy to isolate Trump, deter American aggression, and defend the multilateral system.
Time for EU Bonds to Shine – Commentary (Paywall)
Philippe Legrain, Project Syndicate, 22.04.2025
As investors’ desperately search for safe alternatives to US Treasuries, the European Union has been given an unprecedented opportunity. In addition to satisfying investor demand, a large issuance of common EU bonds would strengthen Europe’s economy, security, and policymaking autonomy.
World Bank climate message shifts amid Trump era uncertainty – Article
Sara Schonhardt and Zack Colman, Politico, 20.04.2025
The bank’s messaging on climate represents a delicate balancing act between the institution and the U.
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.