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The latest news, debates, proposals and developments on new economic thinking at a glance.
As Event and Team Assistant, you will support the Forum’s team in organizing and running its various events with high-level speakers and participants. Activities include invitation management, venue booking, event logistics for live and hybrid formats and catering organisation. You also support the Forum’s entire team with arising administrative taks such as information management and processing of invoices, and the Director with travel management and expense reports. You will work as a core team member in a young committed team in the heart of Berlin.
All further information and the link to the application portal here: https://cezanneondemand.intervieweb.it/europeanclimate/jobs/event-and-team-assistant-forum-new-economy-28893/en/
When are public finances (legally) sound? -Blog post (German)
Max Krahé & Philipp Orphal, Makronom, 28.11.2022
The term “sound public finances” is often used without really being filled with life. Yet the definition is central to European and national fiscal policy.
The wealthy who like the idea of a wealth tax – Opinion piece
Martin Sandbu, Financial Times, 24.11.2022
The moneyed classes are beginning to think governments have been too kind to them.
33 per cent for oil and gas companies: This is Lindner’s plan for an excess profits tax – Article (Paywall, German)
Martin Greive & Julian Olk, Handelsblatt, 23.11.2022
The Finance Minister did not want a general excess profits tax, but now has to implement one for oil and gas companies. However, he does not want to call it that.
The Resistible Rise of Germany’s Far Right – Article
Dalia Marin, Project Syndicate, 22.11.2022
As nationalist parties gain power across Europe, Germany’s own populist surge has remained confined to its deindustrialized east. This is because the country has benefited more from globalization than other developed countries – and it could benefit from deglobalization as well.
Europe’s Fiscal Framework. The people’s view? – Policy Paper
Frank van Lerven, Dominic Caddick, Sebastian Mang, New Economics Foundation, 04.11.2022
How austerity made us poorer and less able to cope with crises.
In the years 2009 to 2020, at least 409 billion euros in corporate assets were bequeathed or given away tax-free due to corporate privileges. In the last twelve years, 3,630 persons with transfers of more than 20 million euros received a total of 260 billion euros tax-free, i.e. on average more than 71 million euros per person.
If one takes as a basis the tax rate of at least 27 percent applicable to these high transfers, tax revenues of more than 70 billion euros were foregone in these few cases alone.
Click here for the study and here for the “inheritance tax clock”, which illustrates how much tax revenue the state has lost due to the tax privileges on wealth transfers since 2009 and what could have been financed with the money instead.
Topic: After COP27: What priorities for future international climate policy?
When: Thursday, 01.12.2022 | 9:00 am – 10:00 am (CET)
Where: Forum Hertie School
Keynote remarks by Laurence Tubiana (European Climate Foundation) and panel discussion with Inge Kaul (Hertie School) and Christian Flachsland (Hertie School Centre for Sustainability), with a welcome by Cornelia Woll (Hertie School). Hosted by the Centre for Sustainability.
More information here.
How to negotiate more climate protection – Article (German)
Dennis Snower, Die Zeit, 21.11.2022
It is time to explore alternatives to the world climate summits: If we tackle climate and pandemic goals in combination, new room for manoeuvre will emerge.
What is the point of working any more? – Essay (German, Paywall)
Kathrin Werner, SZ, 19.11.2022
Many people are stressed, constantly in a hurry, constantly under pressure. From the question of why we do this to ourselves and whether it can’t be done differently.
It’s the economy, stupid (but not as we thought) – It’s the economy, stupid (aber nicht so, wie wir dachten) – Opinion piece
Martin Sandbu, Financial Times, 17.11.2022
Their surprisingly good midterms should make US Democrats appreciate Bidenomics.
Collateral Damage From Higher Interest Rates – Blogpost
Servaas Storm, INET Blog, 05.11.2022
Why to Be Wary of Another Volcker-Type Monetary Tightening
Rishi Sunak: Return to austerity? – Article
Owen Jones, der Freitag, 43/2022
Liz Truss was in office for only 50 days. But even if her successor Rishi Sunak will last longer – even he will not solve the deep-rooted problems of British society. The reason: the ideology of the Tory party.
Fixing a web bug: How the stimulus component could become democratically legitimate and more sustainable – Article
Florian Schuster & Philippa Sigl-Glöckner, Wirtschaftsdienst, 102/2022
In the coalition agreement, the traffic light coalition agreed to review the cyclical adjustment procedure within the framework of the debt brake. At the centre of the process is the estimation of potential output. The procedure on which the estimation of potential output is based has been subjected to a variety of criticisms, among other things because of its procyclicality and susceptibility to revision. However, it is not enough to start with the criticism here. For before it is a question of optimising the estimation methodology, criteria should be spelled out for how it can contribute to a democratically legitimised fiscal policy.
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.