Financial populism in Germany

Financial populism in Germany

photo: fdecomite In May 2015 the European Central Bank published a working paper by U. Bindseil, C. Domnick and J. Zeuner entitled “Critique of accommodating central bank policies and the ‘expropriation of the saver’. A review“. At first sight, this looks like a common paper of literature review. However, in the first line of the Abstract […]

German Investment: The Pedal Is Off the Metal

There is an ongoing discussion on whether Germany is underinvesting and whether it could do more to increase its growth through investment. An analysis of recent trends produced by Roubini (subscription only; referenced today in Bloomberg) shows that German investment is low when measured against its current ability to invest, and is unlikely to significantly […]

Occupy Germany!

Germany is a short train ride away for 300 million EU citizens. Borders are open. Occupy in the name of the 99%. Stop austerity NOW. Go in peace. Obey all laws. Support the German Labor Unions. Do not leave until the Neoliberals are thrown out. Latest news from the front: March 18, 2015 at 9:32 […]

Germany: It Ain’t Your Father’s Locomotive

This Great Graphic comes from Markit’s Chris Williamson.   It illustrates that the German good producing sector has fallen on hard times again.  The economy contracted by 0.2% in Q2.  Another decline in Q3 cannot be entirely ruled out, though it may just escape with something just above stagnation. The main cause that most politicians and economists will focus on […]

Stuck in the Middle With Merkel? Upcoming German State Elections

German politics will become more interesting starting this weekend.  On Sunday, the largest state in the former East Germany, Saxony will hold its local election.  The key issue is how does the anti-euro Alternative for Germany (AfD) do. In May, much to the chagrin of Chancellor Merkel, the AfD garnered enough vote to secure representation in […]

Germans Happily Pay More For Renewable Energy, But Would Others?

By Chris Dalby: While Germany is breaking world records for the amount of sustainable energy it uses every year, German energy customers are breaking European records for the amount they pay in monthly bills. Surprisingly, they don’t seem to mind. In the first half of 2014, Germany drew 28 percent of its power generation from renewable energy […]

Bundesbank Says Nein and Ja on Further ECB Accommodation

Germany appears to have capitulated.  The Bundesbank has dropped its opposition to extraordinary measures, like ending the sterilization of the SMP bond purchases, and has even dropped its visceral opposition to QE, if it can be structured properly to keep within the ECB’s mandate. As Jurgen Stark’s recent op-ed piece in the Financial Times makes clear, this […]

Five Policy Issues for 2014

Earlier this week I highlighted five issues that could prove particularly thorny for international economic policymakers this year.  They were: – A further sharp depreciation of the yen, in a scenario where the Bank of Japan needs to double down on quantitative easing (QE) to achieve it’s two percent inflation target. – A widening of external imbalances notably in Germany […]

Burdens of Unwanted Empire—Miscalculating Germany’s Economic Strength

Chancellor Angela Merkel has been inaugurated for a  third term and will once more preside over Germany in a ‘grand coalition’. This time around she may have been handed a poisoned chalice. Germany faces significant economic challenges risks. The nation’s s economic power and financial strength may be overstated. It remains vulnerable to continuing problems […]