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the New Economy Ticker
The latest news, debates, proposals and developments on new economic thinking at a glance.
Inflation Didn’t Have to Doom Biden – Interview
An interview with Isabella Weber by Bhaskar Sunkara, Jacobin, 13.11.2024
Economist Isabella Weber explains in a long-form interview where the inflation surge came from and how the Biden administration struggled to take necessary measures to combat it.
A revolution for the European Central Bank – Artikel (Paywall)
Guest commentary by Marcel Fratzscher, Handelsblatt 18.11.2024,
In order to stabilise the EU economy, the ECB must move away from its current inflation target. What it needs is a new monetary policy.
What if the economy booms under Trump? – Artikel (Paywall)
Mark Schieritz, ZEIT, 13.11.2024
Many in Europe are betting that Trump’s economic policy will harm him. But that doesn’t have to happen, because capitalism also works without democracy.
Easing the debt brake – before the election – Artikel (Paywall)
Markus Brauck, SPIEGEL, 14.11.2024
Any new government will fail if it is unable to spend more money. That is why CDU leader Merz should be courageous and help to reform the debt brake before the new elections.
We don’t need the US to fight climate change – Article (Paywall)
Laurence Tubiana, Financial Times, 14.11.24
Multilateral action has proven resilient before, and it must do so again.
„In the US, some things that are done here would be a criminal offence“ – Interview (Paywall)
Interview with Ulrike Malmendier by Julian Olk, Handelsblatt, 13.11.2024
In this interview, the economist explains the far-reaching proposal for investment quotas in Germany, the Trump phenomenon – and the current situation regarding the dispute in the German Council of Economic Experts.
Finding the money to make Europe great again – Article (Paywall)
Martin Sandbu, Financial Times, 17.11.24
Frozen assets and large capital exports should be go-to sources for funding a geopolitical transformation.
Economist Weber on the economy under Trump: ‘Fear is an important factor’ – Article
Interview von Jonas Waack, Taz, 11.11.2024
What will happen to the US economy now? Economist Isabella M. Weber on inflation, price shocks and anti-fascist economic policy.
Is the German economic model at an end? – Article (Paywall)
Claus Hulverscheidt, SZ, 10.11.2024
The balance in the global economy is shifting dramatically, with free trade and open markets being replaced by nationalism. The biggest loser could be the world export champion: Germany.
How to survive a trade war with the United States – Article (Paywall)
Sam Lowe, Financial Times, 11.11.2024
Whatcha gonna do when they come for you?
Will Friedrich Merz get Germany to abandon its fiscal fetish? – Article (Paywall)
Laura Pitel, Financial Times, 11.11.2024
Opposition leader in pole position to become chancellor will inherit controversial ‘debt brake’.
Democrats join 2024’s graveyard of incumbents – Article (Paywall)
John Burn-Murdoch, Financial Times, 07.11.2024
Governments across the world are struggling in this period of economic and geopolitical turmoil.
Middle Powers Will Make a Multipolar World – Article (Paywall)
Dani Rodrik, Project Syndicate, 11.11.2024
Although middle powers like India, Indonesia, Brazil, South Africa, Turkey, and Nigeria are unlikely to form a bloc of their own, they are well-positioned to lead on many pressing issues. In doing so, they can offer a vision for the world economy that does not depend on either America’s or China’s power and goodwill.
What is liberal? – Blogpost
Daniel-Pascal Zorn, Politik & Ökonomie Blog, 30.09.2024
Is the history of liberalism identical to the story that liberals tell about themselves? Why is John Locke regarded today as the mastermind of liberalism and not the long line of philosophers from Cicero to Spinoza? In his first column, Daniel-Pascal Zorn focusses on liberalism’s ability to present itself as reason beyond the extremes.
Bidenomics Is Starting to Transform America. Why Has No One Noticed? – Article
Nicholas Lemann, The New Yorker, 28.10.2024
The full effects of the President’s economic policies won’t be felt for years. That might be too late for Kamala Harris and other Democrats.
German US exports have benefited from the Inflation Reduction Act – Article (Paywall)
Martin Greive, Handelsblatt, 04.11.2024
Contrary to widespread fears, the gigantic subsidy programme has not harmed German exports, but rather boosted them. And another study shows something else.
When Trump comes, Europe must finally show its true colours – Article (Paywall)
Guest article by Laura von Daniels, Handelsblatt, 03.11.2024
What should we do if Donald Trump wins the US election? The EU member states disagree on a joint response. Germany is not prepared either, says Laura von Daniels.
Whoever wins, America will still need to turn itself around – Artikel (Paywall)
Rana Foroohar, Financial Times, 03.11.2024
National renewal will require elites to buy into a project of far-reaching reform.
Traffic light coaltion: Much ado about nothing? – FDP defends itself against the accusation of breaking coalition – Artikel (Paywall)
Josefine Fokuhl, Martin Greive und Julian Olk, Handelsblatt, 03.11.2024
With his policy paper on the ‘economic turnaround’, Christian Lindner is fuelling speculation about the end of the coalition. The FDP leader does not want his paper to be understood in this way.
An economic policy agenda for the German federal government – Article
Column by Marcel Fratzscher, Die Zeit, 01.11.2024
A turnaround does not require aid for individual companies, but a major investment programme. A German fund would be a good first step in this direction.
How the state can function again – Article (Paywall)
Guest article by Henning Meyer, FAZ, 01.11.2024
Henning Meyer worked in ministries for five years. Now he’s worried: if things go on like this in the administration, it will damage democracy.
Europe can learn fiscal lessons from the UK on how to achieve its goals – Article (Paywall)
Guest article by Mario Draghi, Financial Times, 01.11.2024
A co-ordinated reform agenda is crucial if the EU is serious about becoming a climate leader and geopolitical player.
Economic crisis and trade conflicts threaten Europe’s automotive industry – Article
Thomas Moller-Nielsen, EURACTIV.com, 31.10.2024
Volkswagen’s plans to close plants in Germany reflect the deep crisis in the European economy. Analysts warn that Trump’s re-election or Chinese retaliatory tariffs could further exacerbate the situation.
IMF: Germany should invest more – Article
Winand von Petersdorff-Campen (Washington), FAZ, 25.10.2024
At the annual meeting of the IMF and the World Bank, criticism of the German debt brake does not fade away. Finance Minister Christian Lindner no longer wants to philosophise about austerity.
Economist estimates additional financing needs for public investment in Germany at half a trillion Euros – Article
Jens Südekum, Welt, 28.10.2024
According to estimates by economist Jens Südekum, the SPD and Greens’ investment plans are likely to cost half a trillion euros by 2030 – and they are causing controversy. The economic advisor to Federal Finance Minister Christian Lindner warns of an ‘economic flash in the pan’.
“The reading comprehension of economists is very limited” – says an economist – Article
Jannik Tillar im Interview mit Tom Krebs, Capital, 22.10.2024
What economists recommend to politicians is under-complex, says economist Tom Krebs. Some of the current problems are based on naive ideas about how the economy works.
The problem with boomer economists – Article
Maurice Höfgen, taz-Kolumne ‘Was kostet die Welt?’, 27.10.2024
Boomers explain the economy with the same old thoughts and awful phrases. Our new columnist puts an end to this.
US election: How can Germany and the EU steel themselves? –Article (Paywall)
FAZ OpEd by Lisandra Flach and Clemens Fuest, 28.10.2024
Trade relations with the USA will remain challenging regardless of the outcome of the election. However, there are some recipes for EU economic policy.
What is Kamalanomics? With James Politi – Podcast
FT Podcast The Economics Show with Soumaya Keynes, 21.10.2024
Adding up a candidate’s economic programm.
Women will decide America’s future – Article (Paywall)
Rana Foroohar, Financial Times, 28.10.2024
Where female voters go, the result of the US presidential election follows
“Great Power Politics” – Article
London Review of Books Vol. 46 No. 21, 7 November 2024
Adam Tooze on Bidenomics
Climate Change and Macroeconomic Models: Why General Equilibrium Models Do Not Work – Article
Yannis Dafermos, Andrew McConnell, Maria Nikolaidi, Servaas Storm, and Boyan Yanovski, INET, 28.10.2024
The limitations of the benchmark E-DSGE framework and how these limitations restrict the ability of this framework to meaningfully capture the macroeconomics of the climate crisis.
The wrong paradigm change – Article
Samuel Decker, Makronom, 17.10.2024
The state is intervening more and more in the economy. However, it would be premature to celebrate an economic paradigm shift.
Power, as well as price, matters in a well-run economy – Article (Paywall)
Rana Foroohar, Financial Times, 21.10.2024
That’s the lesson to take from both the founding of the Bretton Woods system 80 years ago and the Biden administration today.
Four economic truths that explain the US’s bizarre election – Article (Paywall)
Robert Armstrong, Financial Times, 17.10.2024
A trip to America’s number 3 shopping mall offers answers to what’s really going on.
Nobel Prize in Economics: Democracy is good for growth – Article (Paywall)
Alexander Hagelüken, Süddeutsche Zeitung, 15.10.20224
Economist Daron Acemoğlu explains why countries get rich or stay poor. The Nobel Prize in Economics awarded to him and two colleagues acts as a political signal – to Europe and the USA, where right-wing populists like Trump want to undermine democracy.
The Nobel for Econsplaining – Article (Paywall)
Brendan Greeley, Financial Times, 21.10.2024
Acemoglu, Johnson and Robinson won a prize for applying economics to the very things economics is inherently bad at figuring out.
The Colonial Origins of Economics – Commentary
Ingrid Harvold Kvangraven, Surbhi Kesar, Devika Dutt, Economic & Political Weekly, 19.10.2024
By providing an easy and elegant “answer” to the complex process of development, albeit a wrong one, Daron Acemoglu, Simon Johnson and James Robinson’s rise to prominence has lent support to a very particular understanding of development that is now prevalent in the discipline.
This is how Germany inherits – Article
Nathanael Häfner, ZEIT ONLINE, 20.10.20224
A study shows that Germans primarily bequeath cash to their descendants. It also makes it clear that wealth accumulates over generations.
Four-day week without loss of salary brings advantages above all – Article
Handelsblatt, 18.10.2024
Fridays off and still being paid like a full-time job: It sounds almost too good to be true. However, advocates of the four-day week believe it is practicable.
What does the SPD cost me? – Article (Paywall)
Mark Schieritz, ZEIT ONLINE, 15.10.20224
The Social Democrats want to burden the rich and relieve the poor with a tax reform. But who would really benefit? ZEIT ONLINE has done the maths.
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.