IW-Kurzbericht, 16 February 2017 Markus Demary

The End of Low Interest Rates? Arrow

After the economic recovery has strengthened and inflation rates have increased, hopes for higher interest rates emerged among savers, while debtors began to fear higher financing costs. This article argues, that there is room for higher interest rates, but this room is small compared to historical interest rate levels.  more

European Emission Trading
IW News, 15 February 2017 European Emission Trading

It works! Arrow

The European Parliament is set to reduce the amount of available CO2 certificates more than originally foreseen. Industry shall be incentivised to invest increasingly in new, low-carbon technologies. For national governments – and in particular the German government – this should be taken as a signal to restrain itself from additional national plans.  more

Qualified immigration from India showing signs of success
IW-Kurzbericht, 14 February 2017 Oliver Koppel / Axel Plünnecke

Qualified immigration from India showing signs of success Arrow

In recent years, qualified immigration has started to play a significant role for the German labour market, especially for securing skilled STEM (science, technology, engineering, and mathematics) employment. Efforts made to attract STEM immigrants from India are starting to show signs of success – both the number of employees in academic STEM jobs and the number of students in STEM disciplines have increased significantly in recent times. From a strategic viewpoint, this immigration from demographically strong non-European countries is particularly important for the future. more

IW Press Release, 12 January 2017 IW Business Survey

German firms relaxed in view of upcoming BrexitArrow

German firms relaxed in view of upcoming Brexit

More than nine out of ten German firms do not expect strong effects from Brexit on their business activities in the near future. This is the result of a recent business survey covering 2,900 German firms conducted by the Cologne Institute for Economic Research.more

Michael Grömling / Jürgen Matthes German companies relaxed about Brexit
German firms relaxed in view of upcoming Brexit
IW Press Release, 12 January 2017 IW Business Survey

German firms relaxed in view of upcoming Brexit Arrow

More than nine out of ten German firms do not expect strong effects from Brexit on their business activities in the near future. This is the result of a recent business survey covering 2,900 German firms conducted by the Cologne Institute for Economic Research. more

ECB Might Overshoot the Inflation Target
IW-Kurzbericht, 1 February 2017 Markus Demary / Michael Hüther

ECB Might Overshoot the Inflation Target Arrow

The European Central Bank (ECB) has prolonged its large-scale asset purchase programs for public and private bonds in December 2016 until the end of 2017. Otherwise the programs would have expired in March 2017. Due to its strong focus on the inflation target of below, but close to 2 percent, the extension of the asset purchasing programs was expected in case of weak inflation dynamics. Inflation, however, recovered at the end of last year due to normalizing oil prices. more

Fed’s interest rate decision
IW News, 2 February 2017 Fed’s interest rate decision

Conflict postponed Arrow

The US Federal Reserve has not raised its key interest rates despite good economic data. The new US government is likely to be satisfied with this decision, because low interest rates help to fund its planned infrastructure projects. The political pressure on the Fed is therefore likely to increase. more

IW News, 26 January 2017 Studying abroad

A European success story Arrow

Thanks to Bologna and Erasmus: The number of German students abroad has more than tripled since the 1990s, reports the German Federal Statistical Office today. Studying abroad improves job opportunities and strengthens the interest in Europe. The Brexit, however, partly questions this exchange. more