Ulrike Hammerich (Copyright)  Puzzle Puzzel Puzzlespiel
Roundup, 17 Nov 2017

After the establishment of the Banking Union, the European Commission is working on measures to foster capital market deepening in Europe. Key goals for a European Capital Markets Union are to provide firms with alternative funding sources to bank credit and to make economies more resilient to local ... more

Tobias Machhaus (Copyright)  Solar Solarenergie Sonnenenergie
Press Release, 16 Nov 2017

Baden-Württemberg, Mecklenburg Western Pomerania, and Bavaria are the leading federal states in the field of renewable energy. That is the result from a comparison of the federal states which was compiled by the German Institute for Economic Research (DIW Berlin) and the Center for Solar Energy ... more

puje (Copyright)  Statistik Diagramm Bilanz
Roundup, 15 Nov 2017

Financial market indicators can provide valuable information for forecasting macroeconomic developments. In response to the global financial crisis of 2007/2008, the role of financial variables for forecasting has been revisited, and new empirical and theoretical forecasting methods able to ... more

Gk (Copyright)  Detailaufnahme Detailansicht Detail
Report, 10 Nov 2017

Fostering cross-country risk-sharing via capital markets is a central macroeconomic objective of the Capital Markets Union. Risk-sharing means that individuals, firms or public-sector authorities, located in a region or country suffering from a temporary and idiosyncratic economic shock, would be ... more

Jürgen Wiesler (Copyright)  Mathematik Mathe Tafel
Press Release, 08 Nov 2017

Boys consider themselves to be more gifted in mathematics than their grades indicate, whereas girls think their language skills are stronger. Differences in students’ self-evaluation of their skills are evident by the fifth grade and remain present throughout higher grades Boys think higher ... more

List of news
by Hans-Helmut Kotz, Dorothea Schäfer, in Vierteljahrshefte zur Wirtschaftsforschung

by Andreas Breitenfellner, Helene Schuberth, in Vierteljahrshefte zur Wirtschaftsforschung

With a view to establishing a Capital Markets Union (CMU), efforts to integrate (private) capital markets and private risk-sharing in the European Union are underway. However, the single (capital) market will be burdened by a perennial potential threat to sovereign bond market stability in the euro area; these markets had disintegrated during the “euro crisis“. While several reforms related to the institutional architecture of the euro area, such as major parts of the banking union, have been implemented successfully, the eminent design feature of the euro area that nourishes fragmentation and flight to safety is not sufficiently fixed: With the adoption of the euro, Member States became ‘subsidiary governments’ that were no longer capable of issuing bonds under their own exclusive monetary control. Thus, integrating euro area sovereign bond markets should be a top priority. One remedy would be to pool sovereignty via euro bonds, or, given the reluctance to embrace risk-sharing among sovereigns, to introduce synthetic euro bonds that work without debt mutualization.

by Jürgen Schaaf, in Vierteljahrshefte zur Wirtschaftsforschung

Every initiative that potentially increases the effectiveness of monetary policy is welcome. The European Union’s Capital Markets Union (CMU) project is potentially a point in case, even though monetary policy is not a policy target of CMU. Increasingly developed capital markets in the EU are neither sufficient nor necessary conditions for the effective conduct of monetary policy. Credibility of the central bank, a wellfunctioning and flexible operational framework, as well as appropriate, targeted instruments compatible with the respective financing structures are more important. Still, more efficient pricing, risk-sharing, and more independence from the banking sector could increase the effectiveness of monetary policy in the euro area, possibly easing potential technical restrictions in crisis times and in an environment of very low interest rates. Moreover, the indirect benefits from more diversified funding sources in general, and capital markets-based funding in particular, also speak in favor of promoting the CMU from a monetary policy perspective.

List of Publications

Latest Tweets of DIW Berlin:

summarizes pros &cons of capital market openness and discusses stability implications of different forms of capital market integration
, , & are the leading German federal states in the field of . That’s the result from a comparison of the federal states which was compiled by DIW Berlin, , &
Franziska Holz explaining what phaseout pathways we can expect in each case study country, their NDCs+ and impacts on global , results from our project at
For a great and concise overview of the lit on the use of financial market indicators in forecasting see my colleague Stefan Gebauer's new DIW Roundup:
After a lost decade in the 2000s, ’s golden economic years are continuing, with another impressive growth quarter of 0.8%, with few signs of overheating. Expect this to continue for at least another two years.
financial variables in : new discusses theoretical models & the link between financial and
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