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.
LATEST NEWS
Debt for Germany – What good is the black-red-green financial package?
Good money - A question of political will? With Philippa Sigl-Glöckner and Stefan Kolev
Debt for Germany – What good is the black-red-green financial package?
Good money - A question of political will? With Philippa Sigl-Glöckner and Stefan Kolev
KNOWLEDGE BASE
REDEFINING
THE ROLE OF
THE STATE
The Challenge
Decaying infrastructure and a lack of investment in education and innovation expose the weaknesses of an overly market-driven paradigm.
What went wrong
Reducing the role of the state in the economy was seen as the best way to ensure high levels of growth.
New Economy in Progress
The challenges of our time require us to rethink the role of the state and the need for a more active fiscal policy.
5 POSSIBLE WAYS THAT ARE DISCUSSED TO REDEFINE THE ROLE OF THE STATE
THE STEEP DECLINE IN NET PUBLIC INVESTMENT
New Economy Short Cut with Sebastian Dullien
Sebastian Dullien (IMK) gave an assessment of the impact of the economic stimulus package at the start of our new format "New Economy Short Cuts".
Toward a New Fiscal Constitution
Mariana Mazzucato and Robert Skidelsky call for a new and mission-oriented fiscal constitution. They advocate for new indicators and the implementation of Job Guarantee Programmes.
New Economy Short Cut with Kristian Blickle (New York Fed)
Kristian Blickle will present a new version of his working paper "Pandemics Change Cities: Municipal Spending and Voter Extremism in Germany, 1918-1933".
The way out of the crisis – all news about a possible recovery plan
The German government has decided on an economic stimulus package of 130€ billion. Achim Truger and Michael Hüther evaluated individual measures in advance. Laurence Tubiana and Emmanuel Guerin insist on the importance of the Green Deal for reconstruction.
Corona Workshop Video: Fiscal Policy – Will the Trillions be enough?
Robin Brooks, Frank van Lerven, Antonella Stirati and Shahin Valleé discuss the fiscal capacities of countries hit by the corona virus and lay out what needs to be done next.
Central banks to the rescue? Is this the time for helicopter money?
Corona Workshop: Over the last four decades central banks have been almost exclusively mandated with the task of macroeconomic stabilization. Can they still do their job? We discussed this with Eric Lonergan, Martin Hellwig, Peter Bofinger and Daniela Gabor.
Introduction to The Corona Economic Shock
Introductory remarks by Thomas Fricke and Gerhard Schick on the state of the economy and a plan to cope with the crisis at the Forum Corona workshop.
The Corona Crisis - Is this the time for Helicopter Money?
Marc Adam explains the concept of helicopter money and analyzes the discussion around it. Input for the session on central bank action during the corona crisis.
VI New Paradigm Workshop - The Corona Crisis
How dramatically does the Corona crisis threaten to become economically and financially still? Will the aid be enough? And will the world be the same as before?
Corona Workshop Video: Real Economy Crisis – Towards the Great Corona Depression?
Nicola Brandt, Sebastian Dullien, Stephen Kinsella and Jens Südekum discuss the real-economic effects of the Corona crisis
One Policy is not Enough – Proposals for the EU
What is the EU's coherent response to the Corona crisis? For days the advantages of the ESM or Euro-bonds have been discussed. In the meantime there is a consensus that a single measure will not suffice.
Maja Göpel: A Social-Green Deal as the Answer
Maja Göpel puts an end to three formerly dominant narratives that determined the economy. For her, the way out of the crisis must be a social-ecological one, which must be tangible for the people.
Simons Blog: Why this crisis will bring about a new economic settlement
Policymakers reverted to the status quo after the last recession. This time must be different.
Romer & Garber: How to prevent the economy from dying?
The corona-pandemic has emerged from a health crisis into an economic crisis with looming supply and demand shocks. Nobel prize winner Paul Romer and Alan Garber from Harvard University have laid out a plan to deal with the crisis.
OTHER 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.
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.