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the New Economy Ticker
The latest news, debates, proposals and developments on new economic thinking at a glance.
Is Innovation or Financialization to Blame for Rising Inequality? – Commentary (Paywall)
Keun Lee, Project Syndicate, 28.08.2025
In the economics literature, there are two important lines of thinking about the causes of inequality, with some placing the blame primarily on technological innovation and others emphasizing the role of financialization. New research offers a clear answer.
Trump’s Shock Therapy Will Divide MAGA – Commentary (Paywall)
Harold James, Project Syndicate, 01.09.2025
With his unorthodox approach to politics, Donald Trump promised radical change, which he is now delivering at home and abroad. But history offers plenty of lessons about where such strategies lead, and the outcome is rarely what their proponents had in mind.
Warnings from the citadel of economic orthodoxy – Interview (Paywall)
Martin Sandbu, Financial Times, 31.08.2025
Gita Gopinath, the IMF’s outgoing number two official, reflects on six tumultuous years for the global economy.
Right-wing populists do have something that left-wing populists lack – Interview
Nancy Fraser in talk with Tobias Bachmann and Nils Markwardt, DIE ZEIT, 02.09.2025
The political left is despondent today, says US philosopher Nancy Fraser. If it wants to counter the right-wing vibe shift, it needs a new identity.
CDU’s labor wing can envision an inheritance tax reform – Article
DIE ZEIT, AFP, sko, 01.09.2025
The more left-wing section of the CDU considers a partial reform of inheritance tax to be ‘overdue’. General Secretary Carsten Linnemann would prefer to make
Majority in favour of higher taxes – also among CDU/CSU supporters – Article
Christian Basl, Tagesschau, 03.09.2025
The reputation of the federal government is at a low point after four months in office. Yet many reform proposals from the black-red coalition are well received by Germans. Many CDU supporters also consider SPD ideas for tax increases to be reasonable.
Trump conjures up a national and global economic crisis – Commentary (Paywall)
Commentary by Claus Hulverscheidt, Süddeutsche Zeitung, 26.08.2025
The president wants to get rid of a member of the US Federal Reserve’s board of directors with unproven allegations – in order to persuade them to lower interest rates. But under no circumstances should the Fed fall under the thumb of a political fanatic.
‘We are dealing with an authoritarian regime’ – Interview (Paywall)
Interview: Mark Schieritz, DIE ZEIT, 26.08.2025
Trump wants to fire a Fed governor. The president is attacking the separation of powers, says US economist Rudi Bachmann. He is pushing more and more boundaries – with fatal consequences.
Trump’s Global War on Decarbonization – Commentary
Mark Blyth and Daniel Driscoll, Project Syndicate, 21.08.2025
The Trump administration is doing everything it can to ensure that fossil fuels remain dominant in the energy mix of the twenty-first century. If it succeeds, the short-term returns to the US will be huge; but the long-term damage to the planet will be orders of magnitude larger.
Europe as a spectator – How Do We Change Our Continent’s Trajectory? – Commentary
Mario Draghi, Geopolitique, 24.08.2025
For years, the European Union, with its 450 million consumers, believed that its economic weight came along with geopolitical power and influence in international trade relations. This year will remain etched in our memories as the year when this illusion was shattered.
How the Richest People in America Avoid Paying Taxes – Article (Paywall)
Annie Lowrey, The Atlantic, 25.08.2025
A clever new paper puts concrete numbers to the taxes paid by members of the Forbes 400.
The illegitimate offspring of neoliberalism – Article (Paywall)
Oliver Weber, FAZ, 26.08.2025
Detective work on the history of ideas: Quinn Slobodian locates the sources of the populist right in a surprising place.
Good COP, worse COP – Article (Paywall)
Pilita Clark, Financial Times, 19.08.2025
A clamour to rethink global climate policy is exactly what we need.
The Basic Law effectively requires climate neutrality by 2045 – Article (Paywall)
Guest article by Thomas Heilmann, Mark Helfrich, Peter Liese, Wiebke Winter, FAZ, 20.08.2025
Following the constitutional amendment on the debt brake, climate neutrality in the Basic Law was discussed. The constitutional mandate for climate protection was already clearly defined beforehand. Verbal attacks on climate targets are not helpful.
Crisis? Let’s create a new review body first – Article (Paywall)
Dr. Kolja Rudzio, DIE ZEIT, 18.08.2025
The German economy is in even worse shape than previously thought – and the federal government is doing too little to change that.
Klingbeil’s advisors warn against relaxing the debt brake – Article
Stern, 08.08.2025
A commission is working on a reform of the debt brake for the federal government. Now advisors to Finance Minister Klingbeil are getting involved. Their stance is unlikely to please the SPD leader.
Donald Trump’s war on economic independence – Article (Paywall)
Chris Giles, Financial Times, 19.08.2025
The autonomy of institutions is under severe threat.
When toilet paper becomes more expensive – Article (Paywall)
An analysis by Fabian Franke, DIE ZEIT, 20.08.2025
So far, high tariffs in the US have not caused consumer prices to rise – quite contrary to expectations. But the situation seems to be gradually changing.
Will Trump’s Working-Class Base Turn on Him? – Article (Paywall)
Yanis Varoufakis, Project Syndicate, 18.08.2025
Democrats in the United States hope and pray that when the pain from President Donald Trump’s One Big Beautiful Bill begins to bite, his working-class supporters, having been brutally betrayed, will desert him. But the more likely outcome may be that many continue to believe that he is on their side.
Right-wing politics after social decline – Article
Benedikt Peters, Süddeutsche Zeitung, 13.08.2025
People who are worse off economically than their parents are significantly more likely to vote for right-wing populist parties. This is shown by an international study based on data from 89,000 respondents.
Combating right-wing populism with economic populism – Article
Mariana Mazzucato and Rainer Kattel, Surplus Magazin, 13.08.2025
Instead of a chainsaw, we need creative and efficient bureaucracies. Democracy depends on it.
Why politicians are increasingly turning to consultants for help – Article
Julia Löhr and Manfred Schäfers, FAZ, 12.08.2025
The number of economic policy advisors in government ministries is growing. But do politicians actually listen to their advice?
The brave new world of trade has arrived – Commentary (Paywall)
Martin Sandbu, Financial Times, 03.08.2025
Donald Trump has reset the global trading order. What happens next?
Tariffs will raise prices. But the climate crisis is the real inflation risk – Commentary
Mark Blyth and Nicolò Fraccaroli, The Guardian, 22.04.2025
As temperatures rise and countries back off their decarbonization efforts, we must confront a reality central banks can’t correct.
ECB plans to include climate factor in lending to commercial banks– Article
Wirtschaftswoche, 29.07.2025
The ECB wants to incorporate climate risks more strongly into its monetary policy in future. A climate factor is to be taken into account from the second half of 2026 onwards.
The new government’s industrial policy: still a long way from a holistic approach – Article
Sebastian Dullien, Wirtschaftsdienst, August 2025
The industrial policy measures provided for in the coalition agreement do not follow any clearly recognisable strategy. In order to achieve their full effect, the federal government should make adjustments based on three key conditions for success.
For European Economic Policy, the New World Has Yet to Be Born – Article
Sander Tordoir, Intereconomics, August 2025
As Europe revisits its economic strategy – spurred by calls to “make Europe competitive again” – it must move beyond stylised contrasts and ask what it takes to build and scale technological capacity today.
Governance for a modern industrial policy: The example of the Saarland Transformation Fund – Article
Jakob von Weizsäcker, Wirtschaftsdienst Zeitgespräch, Issue 8 (August edition)
This article is part of Revitalising industrial policy.
The transformation in Saarland is particularly challenging due to an energy-intensive economic structure and high industry concentration, especially in steel and automotive. The success of the transformation fund, which was set up in response to an exceptional emergency situation within the meaning of the debt brake, is to be ensured by five governance elements, including a responsibility partnership: (1) stricter control rights for the state parliament than in the core budget; (2) a clear separation of the transformation from other policy areas; (3) an increase in the investment ratio in the core budget to finance additional investments; (4) the establishment of the fund’s office in the Ministry of Finance as an additional point of contact for risk assessment of the project portfolio; and (5) constructive and critical support from an independent advisory board.
Climate finance policy: Initiative calls for green rule instead of debt brake – Article
Joachim Wille, Frankfurter Rundschau, 04.08.2025
The Potsdam Institute for Climate Impact Research (PIK) shows how the energy transition and sound public finances could be reconciled thanks to a ‘green-gold rule’.
Economic expert Truger: Now we need a crisis solidarity surcharge for the rich – Article
Achim Truger, Surplus Magazine, 05.08.2025
There is a huge gap in the federal budget from 2027 to 2029. A crisis solidarity surcharge for high incomes is needed.
Is AI killing graduate jobs? – Article (Paywall)
Clara Murray, Delphine Strauss, John Burn-Murdoch and Sarah Lim, Financial Times, 24.07.2025
Factors including economic uncertainty and offshoring may be more responsible for a decline in entry-level roles.
AI Should Help Fund Creative Labor – Commentary (Paywall)
Mariana Mazzucato and Fausto Gernone, Project Syndicate, 25.07.2025
Generative AI models are trained on publicly accessible creative content yet offer little to the artists, journalists, coders, and others who produce it. A levy on AI firms’ revenues could help fund the arts, promote open access, and ensure that human ingenuity doesn’t become collateral damage in the quest for profit.
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.