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the New Economy Ticker
The latest news, debates, proposals and developments on new economic thinking at a glance.
One ultimate goal is to use artificial intelligence to determine country-specific fiscal plans that minimise the debt ratio and to test them for SGP conformity. Through an infinitely long time horizon, the present value of all future government expenditures – and thus the intrinsic value of government debt – could be estimated.
More information is available here.
Soft landing in heavy weather. The Fed’s “no drama” policy. – Blogbeitrag
Adam Tooze, Substack, 19.3.2022
Despite high inflation rates, the Fed´s aim seems to be to pull off something very difficult: a soft landing in heavy weather. Reasons for this could be confusion, complacency or ambitiously trying something new.
Wo wir Planung brauchen und wo Wettbewerb – Artikel
Marc Bataille, Makronom, 31.03.2022
A government commission is to reassess the future of hospital planning and financing. But what hospital structure do we actually need – and how should that be decided? New answers could soon be provided by a report of the Monopolies Commission.
The G20 Must Speak Truth to Putin
Maurice Obstfeld, Project Syndicate, 31.03.2022 – Artikel
Auf ihrem bevorstehenden Treffen werden sich die Finanzminister und Zentralbankchefs der G20 mit dem weltweiten Anstieg der Lebensmittelpreise befassen müssen, was wiederum eine Anerkennung der Fakten über Russlands Krieg in der Ukraine erfordert. Ein Kommuniqué, das diese Tatsachen ausblendet, würde zusätzliche Zweifel an der Zukunft der Gruppe aufkommen lassen.
The End of Globalization? – Article
Adam Posen, Foreign Affairs, 17.3.2022
What Russia’s War in Ukraine Means for the World Economy.
Es kommen härtere Tage – Column
Mark Schieritz, Die Zeit, 16.03.2022
More and more money – is not working anymore. As Finance Minister, Christian Lindner has to face scarcity and manage the distributional conflicts.
Framing in der Wirtschaftsberichterstattung – Article
Victoria Teschendorf & Kim Otto, Makronom, 15.03.2022
A new study has examined the role economic paradigms such as Keynesianism or Neoclassical Economics play in the German press. Paradigms seem to have shifted over the course of the pandemic.
Is boycotting Russian energy a realistic strategy? The German case. – Blogpost
Adam Tooze, Substack, 12.03.2022
How do you weigh the effectiveness of an economic weapon? How do you gauge the likely impact on your antagonist? How do you assess the cost to yourself?
The French Ministry for Europe and Foreign Affairs, the German Federal Foreign Office, the Hertie School in Berlin and Sciences Po in Paris have jointly created Henrik Enderlein Prize for excellence in the social sciences.
The prize is awarded annually to a European researcher under the age of forty, whose work is considered to have made an outstanding contribution in her or his field. The prize recognises the value of original ideas and research that are both judged as excellent within the scientific community and relevant for public affairs and social cohesion in Europe.
More information can be found here.
Hitzige Ökonomen-Debatte: Welche Auswirkungen hätte ein Embargo für russische Energie wirklich? – Article (Paywall)
Julian Olk, Handelsblatt, 11.03.2022
Prominent scientists are calling for an energy embargo. They think the consequences are bearable. Other economists say the calculation has flaws – and support Vice-Chancellor Habeck.
Höhere Steuern sind unvermeidlich – es müssen nur die richtigen sein – Opinion Piece (Paywall)
Bert Rürup, Handelsblatt, 11.03.2022
Almost overnight, the federal government needs many additional billions of euros. The traffic light coalition should focus on inheritance and gift tax.
Das „Sondervermögen Bundeswehr“ macht die Schuldenbremse zur Farce – Op-ed (Paywall)
Achim Truger, Handelsblatt, 10.03.2022
The intended amendment to the Basic Law shows: The debt brake is not suitable for meeting the economic and investment challenges, says Achim Truger.
Digital daneben – Article
Helmut Martin-Jung, Süddeutsche Zeitung, 09.03.2022
How innovative is Germany? A government commission of experts paints a pretty bleak picture – especially when it comes to digitalisation.
Taming the Security Dilemma – Article
Dani Rodrik, Project Syndicate, 09.03.2022
Russia’s invasion of Ukraine represents the death knell for the post-Cold War “liberal” international order. But it is possible to create a new, prosperous, and stable world order while remaining realistic about the nature of the competition between the United States, China, and Russia.
What If Our Economy Valued What Matters? – Article
Mariana Mazzucato, Project Syndicate, 08.03.2022
In an economy that treats gross domestic product as the ultimate end, people and the planet are mere means, and much of the work that sustains society is ignored entirely. This status quo is not only pathological, unsustainable, and bad for our health; it is also entirely unnecessary.
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.