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the New Economy Ticker
The latest news, debates, proposals and developments on new economic thinking at a glance.
Germany’s omerta on the debt brake is costing it dearly – Article (Paywall)
Shahin Vallée, Financial Times, 29.01.2025
The country’s fiscal rules stifle much-needed investment and create perverse incentives for its European partners.
What’s Wrong With Germany’s Economy? – Article (Paywall)
Michael Spence, Project Syndicate, 30.01.2025
Germany became a European powerhouse partly because, in the early 2000s, its industrial sectors took over the highest-valued-added segments of global supply chains. Replicating this success today would require Germany to move to the forefront of the digital transformation, and it cannot do that without the EU.
This law will harm Germany – Article (Paywall)
A column by Marcel Fratzscher, Die ZEIT, 31.01.2025
The CDU/CSU led by Friedrich Merz is introducing a controversial law in parliament to limit migration. It also jeopardises Germany’s prosperity.
Trump’s new economic war – Article (Paywall)
Sam Fleming, Ben Hall, Claire Jones and Emma Agyemang, Financial Times, 24.01.2025
The president’s ultimatums and demands on allies and rivals suggest he will use America’s financial might as a cudgel.
The New Washington Consensus – Article (Paywall)
Katharina Pistor, Project Syndicate, 28.01.2025
If a picture is worth a thousand words, the image of Big Tech founders and CEOs filling the front row at Donald Trump’s inauguration is a manifesto. We have just watched private business take over the US government in broad daylight, and history suggests that this won’t end well.
Economic Development after the Washington Consensus – Article (Paywall)
Karim El Aynaoui and Hinh T. Dinh, Project Syndicate, 28.01.2025
In today’s global economy, developing countries must embrace a new policy framework that strengthens their macroeconomic resilience, harnesses technology for productivity growth, and fosters growth and structural transformation. None of this will be possible with an “every country for itself” mentality.
How the normalisation of the radical right favoured its electoral successes – Article
Vicente Valentim, Makronom, 27.01.2025
The rise of the radical right is not so much the result of a sudden change of heart among voters, but rather the product of a creeping normalisation that is bringing previously hidden views to light.
Weber: Inflation topples governments – Article (Paywall)
Isabella Weber, Surplus Magazine, 25.01.2025
From ancient Rome to the Biden era: time and again, inflation has brought down governments. But there are a number of good measures to counteract this.
Protecting the climate grows the economy! – Article
A guest article by Michael Hüther and Ottmar Edenhofer, Die ZEIT, 28.01.2025
Questioning the climate targets is a serious mistake: companies have long since aligned their strategies with them. A plea from an unusual author duo.
Economists Are in the Wilderness. Can They Find a Way Back to Influence? – Article (Paywall)
Ben Casselman, New York Times, 10.01.2025
Economists have long helped to shape policy on issues like taxes and health care. But flawed forecasts and arcane language have cost them credibility.
Economists’ Way Out of the Wilderness – Article (Paywall)
James K. Galbraith, Project Syndicate, 20.01.2025
Monopoly is a powerful thing, particularly where economic ideas are concerned. If economists are to solve the problems that people care about, they must stop treating production as an afterthought and accept – as all other natural and social sciences have – that theories of equilibrium are a comforting nineteenth-century relic.
Populists Are Taking Over—Here’s Why Democracy Is Failing – Article
Mark Blyth, Social Europe, 17.01.2025
Dissatisfied voters and outdated systems fuel populism’s rise. Can bold reforms restore trust in liberal democracy? A conversation with Mark Blyth.
Democracy vs oligarchy, the fight of the century – Article
Thomas Piketty, Le Monde, 21.01.2025
A few days ahead of Donald Trump, Elon Musk, and tech executives aligned with the Make America Great Again (MAGA) movement coming to power, Joe Biden delivered a forceful warning about the emergence of a new « tech industrial complex » threatening the US’s democratic ideal.
Trump’s inauguration: the most important sentences from his brutal speech – Article
Viktoria Bräuner, Tagesspiegel, 20.01.2025
Mass deportations, gender policy, withdrawal from the climate agreement: Donald Trump’s first speech as the 47th US president had it all. Experts analyse the most important points.
The right remedy against Trump – Article (Paywall)
A guest article by Gabriel Zucmann, SPIEGEL Plus, 20.01.2025
The new US president is threatening the stability of the global economy with his tax and tariff policy. Europe should respond with its own form of protectionism.
The black swans of Trumponomics – Article (Paywall)
Martin Sandbu, Financial Times, 23.01.2025
There is so much more than tariffs that can go wrong.
Could Trump undo Biden’s climate legacy? Article
Isabel Hilton, Prospect Magazine, 20.01.2025
The momentum of the green transition may be too strong for the new US president to reverse it.
What will global warming cost us? – Article
Patrick Bernau, Joachim Müller-Jung, Konrad Schuller, FAZ, 18.01.2025
The fires in Los Angeles show: Climate protection is expensive, but a lack of climate protection is more expensive in the long run – and more deadly.
State or Blackrock? – Article
Claus Hulverscheidt, Süddeutsche Zeitung, 22.01.2025
The expansion of the electricity grid will cost a high three-digit billion sum. Whether this is affordable for customers will depend on who is in charge of financing it.
We can’t afford the future right now – Artikel
A column by Marcel Fratzscher, ZEIT Online, 17.01.2025
Rarely has an election campaign been so characterised by redistribution from young to old as this one. The young should pay for the security of the old, no matter how expensive it becomes.
Overshoot debate: Can the 1.5 degrees still be saved?– Artikel
Jonas Waack, TAZ, 04.01.2025
Climate scientists disagree on whether the 1.5-degree target is still fit for purpose. How to measure climate success and global justice.
AfD gains ground after discussion between Musk and Weidel – Artikel (Paywall)
Jana-Sophie Brüntjen und Dietmar Neuerer, Handelsblatt, 14.01.2025
AfD candidate Alice Weidel attracted attention with false statements during her appearance on Elon Musk’s Platform X. According to a new survey, this apparently doesn’t bother voters in Germany.
Elon Musk’s hostile takeover – Article
Quinn Slobodian, The New Statesman, 15.01.2025
Inside the mind of the billionaire at the heart of American power.
Leaked memo reveals alarming German warnings over Trump – Article
Chris Lunday, Politico, 19.01.2025
Trump’s second term will bring a “maximum concentration of power with the president,” Germany’s ambassador to the U.S. warns in confidential document obtained by Reuters.
The Governments That Survived Inflation – Article (Paywall)
Isabella Weber, Foreign Affairs, 15.01.2025
A Policy Toolkit to Tame Prices—and Win Elections.
Reversal of fortunes: Europe’s thriving south and stagnant north – Article (Paywall)
Olaf Storbeck, Eleni Varvitsioti, Barney Jopson, Amy Kazmin, Financial Times, 14.01.2025
With Germany’s economy stalling, tentative growth in Portugal, Italy, Greece and Spain is some good news for the Eurozone. Will it last?
Truger: ‘That would mean a radical austerity policy’ – Artikel
Achim Truger und Lukas Scholle, Surplus – Das Wirtschaftsmagazin, 10.01.2025
With Merz and Lindner, there could be a neoliberal revival. Their policies would lead directly to an economic crisis.
What the parties’ election promises mean financially for every citizen – Artikel (Paywall)
Alexander Hagelüken und Claus Hulverscheidt, Süddeutsche Zeitung, 17.01.2025
Which income groups will see how much of a plus or minus in their wallets as a result of the election programmes? Exclusive calculations show. Top earners would benefit most from the AfD’s plans. Other parties also surprise.
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.
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.