Sovereign Debt Crisis
Sovereign Debt Crisis

Bond purchases only effective together with reforms Arrow

The European Central Bank (ECB) purchases public sector bonds until September 2016 in the amount of monthly 60 Billion Euros. This financial large-scale project will only be effective in the long-run, if conducted together with sustainable supply-side reforms in the Eurozone countries. The ECB should demand these reforms as often as possible. more

Unemployment in the EU

Lock In the job market, women are winning Arrow

Good news has been hard to find in the European labour market over the past few years. Women, however, have had reason to celebrate: When it comes to employment, they have outperformed men. more

IW Crisis Monitor
IW Crisis Monitor

The “crisis countries” are on the right path Arrow

Although the euro zone’s debt crisis is far from over, the situation is unlikely to worsen dramatically. As the latest IW Crisis Monitor shows, all of the “crisis countries” are on the right path – except for Cyprus. more

Banking regulation
Banking regulation

Disadvantages for corporate credit should be removed Arrow

The president of the Supervisory Council at the European Central Bank (ECB), Danièle Nouy, calls for capital adequacy requirements for sovereign bonds. Moreover, she demands an upper limit for these investments. Both reforms were already proposed in recent studies from the Cologne Institute for Economic Research (IW). Privileging sovereign debt by regulation, indeed, disadvantages the credit supply to non-financial firms and enhances financial market risks. more

German firms
German firms

How is the industry coping with globalisation? Arrow

Over the past few decades, there has been a shift in economic power from the established, industralised countries to the emerging, industrialising countries. While the established countries still accounted for 81.4 percent of the global economy in 1995, their share had dropped to 63.5 percent by 2012. The importance of the emerging, industrialising countries has grown; their share of the global economy increased from 12.8 to 27.8 percent between 1995 and 2012. This shift is particularly evident in the industrial sector, where new economic power centres have seen their share of value added rise from 16.2 to 41.3 percent, much of that at the expense of the established countries. Most notably, China’s share grew to 24.4 percent. more

Comparison of labour costs and unit labour costs
Comparison of labour costs and unit labour costs

No “wage dumping” in Germany Arrow

Both at home and abroad, Germany has been accused in many quarters of what is commonly referred to in Germany as “wage dumping”, or paying excessively low wages. However, a look at the manufacturing industry – which is at the heart of international exchange and competition – shows no evidence that wages have been kept at an excessively low level. more

shadow economy
Dominik H. Enste for the IZA

The shadow economy in industrial countries Arrow

Reducing the size of the shadow economy requires reducing its attractiveness while improving official institutions, writes Dominik H. Enste, Econimist at the Cologne Institute for Economic Research for the Institute for the Study of Labor. more

Michael Hüther in The ECB and Its Watchers
Michael Hüther in The ECB and Its Watchers

What ECB Watchers say about the current Monetary-Policy Challenges Arrow

The ECB’s large scale asset purchases are necessary for preventing deflationary dynamics, says Michael Hüther, director of Cologne Institute for Economic Research. They are, however, no substitutes for structural reforms in the Eurozone economies. more

European industrial policy
Michael Hüther for Project Syndicate

Are National Champions Really Winners? Arrow

Which type of industrial policy should European countries adopt, asks Michael Hüther, Director of the Cologne Institute for Economic Research (IW), in his article for Project Syndicate. more

Beyond chlorinated chicken

Beyond chlorinated chicken Arrow

The proposed Transatlantic Trade and Investment Partnership (TTIP) between the European Union and the USA has provoked much criticism and become an object of considerable suspicion. Yet a new study by the Cologne Institute for Economic Research (IW) emphasizes that, especially for Germany, the partnership would have significantly more benefits than drawbacks. Moreover, applied correctly, TTIP could have a positive effect on the future of world trade. more