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the New Economy Ticker
The latest news, debates, proposals and developments on new economic thinking at a glance.
“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.
Rethinking the world without the US – Article
Thomas Piketty, Le Monde, 15.04.2025
To envision what comes next, we need to comprehend the ongoing turning point.
“Trump wants a world that disappeared decades ago” – Interview (Paywall)
Interview: Marcus Gatzke and Marlies Uken, DIE ZEIT, 13.04.2025
US economist James Galbraith explains why the tariff dispute with China is jeopardizing the existence of Walmart. And he sees parallels with the collapse of the Soviet Union.
The Global South Will Pay for Trump’s Trade War – Article (Paywall)
Jayati Ghosh, Project Syndicate, 16.04.2025
Donald Trump’s tariffs have disrupted supply chains, roiled global markets, and escalated the trade war between the United States and China. While US consumers brace for higher prices, low- and middle-income countries will bear the brunt of the crisis, from currency depreciation to rising borrowing costs.
“It’s the sperm lottery”- Interview
Interview: Elisabeth von Thadden, DIE ZEIT, 15.04.2025
In the German inheritance society, you need to be lucky to have the right parents. A conversation with political scientist Martyna Linartas about her book “Undeserved Inequality” and the question of how to get rich more equitably.
Those who already had little are now even poorer – Artikel (Paywall)
Jurik Caspar Iser and Vivien Serve, DIE ZEIT, 10.04.2025
New data from the Bundesbank shows how unequally wealth is distributed. Inflation has hit Germans hard, but the richer half not quite as hard.
A new who’s who of the global elites – Article (Paywall)
Simon Kuper, Financial Times, 10.04.2025
They dominate the countries that account for more than half of global GDP — but who are they?
Tariffs are the mother of all cost shocks – Article (Paywall)
Chris Giles, Financial Times, 15.04.2025
The Fed needs to consider how levies raise prices and what it should do about it.
Donald Trump, Silicon Valley, and the Neoliberal Roots of an Unlikely Alliance – Interview
Jon Skolnik, Vanity Fair, 15.04.2025
In an interview with VF, Hayek’s Bastards author Quinn Slobodian unpacks how libertarians and neoliberals made race and intelligence an intellectual hobbyhorse, laying the foundation for today’s nativist right.
With higher prices, Black-Red risks the failure of its own climate policy – Article (Paywall)
A guest article by Thomas Fricke and Isabella Wedl, SPIEGEL, 07.04.2025
The prospective coalition partners want to maintain that petrol and heating will soon become drastically more expensive. That won’t work. A new, positive climate policy is urgently needed.
The coalition agreement could significantly increase growth – Article (Paywall)
Julian Olk, Handelsblatt, 10.04.2025
Exclusive calculations show: The coalition agreement could significantly boost economic growth. However, many measures are at risk of failing due to a billion-euro funding gap.
The dispute over money will come – Article (Paywall)
Claus Hulverscheidt, Süddeutsche Zeitung, 10.04.2025
In the coalition agreement, the CDU, CSU and SPD commit themselves to austerity and sound budget management. However, the agreement between the future partners raises more questions than it answers.
Why Trump is suddenly changing his mind – Article (Paywall)
Heike Buchter, ZEIT ONLINE, 10.04.2025
The retaliatory tariffs were in place for less than 14 hours before the US president suspended them again. He is not afraid of a recession. But of something else.
As if Trump was the only problem – Article (Paywall)
Kerstin Kohlenberg, ZEIT ONLINE, 10.04.2025
Donald Trump’s tariff policy is wrong. But he is right to target globalization. Why has the discourse on this completely fallen silent?
Americans Can’t Win from Trump’s Trade War – Article (Paywall)
Nancy Qian, 07.04.2025, Project Syndicate
Even the most charitable assessment of the Trump administration’s rationale for launching a global trade war reveals that the policy is utterly misguided. It rests not on empirical findings or economic theory, but on a mountain of assumptions – none of which stands up to even the slightest scrutiny.
Governments Are Not Startups – Article (Paywall)
Mariana Mazzucato and Rainer Kattel, 07.04.2025, Project Syndicate
By trying to running the state like a private business, Elon Musk and other anti-government types are creating a mess that someone else will have to clean up. Governments and businesses serve vastly different purposes, answer to different constituencies, and operate on entirely different timelines.
How to Punish Russia, Make Money and End the War – Article
Glenn Hubbard and Catherine Wolfram, New York Times, 27.03.2025
Donald Trump has had his first Liz Truss moment – Article (Paywall)
Martin Sandbu, 10.04.2025, Financial Times
Unlike the doomed former British PM, the US president is not going anywhere — so uncertainty is here to stay.
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.