Interest rate decision by the Federal Reserve
IW News, 22 September 2016 Interest rate decision by the Federal Reserve

Normalization of monetary policy increasingly unlikely Arrow

The US Federal Reserve Bank (Fed), postponed an increase in its key policy rate again. Last year, the Fed had officially ended its low interest rate policy. But despite improved labor market data it has delayed further rate hikes. The central bank is far away from a "normal" policy rate, which would be 4 percent in the United States, - therefore the Fed might have to rely on negative policy rates like in Europe in the forthcoming economic downturn. more

The Economic Effects of a Brexit on the UK
IW News, 25 August 2016 Jürgen Matthes and Berthold Busch in European Financial Review

The Economic Effects of a Brexit on the UK Arrow

The results of a plethora of studies on the likely economic impact of a Brexit on the UK are rather confusing. In this article, IW economists Jürgen Matthes and Berthold Busch challenge the mainstream view and argue that the risks of a Brexit are likely to be underestimated. more

The Contribution of Supply and Demand Factors to Low Inflation
IW-Kurzbericht, 20 September 2016 Michael Hüther / Markus Demary

IW Monetary Outlook: The Contribution of Supply and Demand Factors to Low Inflation Arrow

Eurozone inflation underperforms since the beginning of 2013 and monetary policy struggles to stabilize it since then. The items of the aggregate inflation rate indicate that low inflation is due to both supply and demand factors and weak demand is caused by indebtness and unemployment. Additional monetary policy measures are not required in the current situation because monetary policy has long lags when economies are indebted and it already helped to reduce cyclical unemployment.  more

Expertise, 29 August 2016 Thomas Puls

For better CO2 regulation of motor vehicles in Europe – A compendiumArrow

For better CO2 regulation of motor vehicles in Europe – A compendium

The transportation sector faces special challenges in the process of decarbonisation, since the need for mobility – both for people and goods – is rapidly increasing around the world, especially in the emerging economies. Because of road traffic’s key position in mobility, the future CO2 regulation of cars and trucks will play a substantial role in climate policy.more

For better CO2 regulation of motor vehicles in Europe – A compendium
Expertise, 29 August 2016 Thomas Puls

For better CO2 regulation of motor vehicles in Europe – A compendium Arrow

The transportation sector faces special challenges in the process of decarbonisation, since the need for mobility – both for people and goods – is rapidly increasing around the world, especially in the emerging economies. Because of road traffic’s key position in mobility, the future CO2 regulation of cars and trucks will play a substantial role in climate policy. more

Why the ECB is not to blame for low interest rates
IW News, 15 September 2016 Markus Demary auf EUROPP

Why the ECB is not to blame for low interest rates Arrow

In the latest set of EU stress tests, several German lenders performed poorly. As Markus Demary writes in EUROPP (Blog of LSE about European Politics and Policy), some of this performance has been blamed on low interest rates squeezing the profitability of lenders. He argues that while the ECB has frequently been blamed for this situation, the reality is more complex and instead reflects long-term trends which can only be addressed by lasting structural reforms. more

Manufacturing industry
IW News, 16 September 2016 Manufacturing industry

The industrial sector: A pillar of the German economy Arrow

While the industrial sector continues to make a substantial contribution to the prosperity and employment market in Germany, it has shrunk considerably in other highly developed countries. The innovative strength of the manufacturing industry in particular can be credited with helping Germany survive the euro crisis. more

IW News, 11 August 2016 EU regional development

Convergence or not? Arrow

Economic convergence is one of the main objectives of the European Union. So far, it’s only been moderately successful. more