Publikationen Fratzscher

Weak Corporate Investment Requires Immediate Action

Although the federal government has been taking steps to strengthen investment in Germany, it remains considerably low. This includes private investment, on which thepresent study focuses. German companies are barely investing more than they did before the crisis, but this is not the case elsewhere: in the US, for example, the level of investment is nearly 14 percent higher than it was in 2007. One ...

Integrating Refugees: A Long-Term, Worthwhile Investment

The debate about the massive influx of refugees into Germany often focuses solely on the short-term costs. But while these expenditures are bound to be substantial inthe coming years, the discussion neglects the long-term economic potential of a successful integration of refugees—often, young people—which can transform the initial expenditure into a worthwhile investment. Even if many of the refugees’ ...

Investing in Germany! Six Questions to Marcel Fratzscher

Overcoming Weaknesses in Municipal Investment

There Are Many Analogies between the GDR in 1990 and Greece Today: Four Questions to Marcel Fratzscher

Lessons for Europe from German Monetary Union

Precisely 25 years ago, on July 1, 1990, German monetary union came into force. On the same day, capital controls in Europe were abolished, creating the basis for European monetary union and the euro. These two historical events fundamentally changed Germany and the rest of Europe. Both German and European monetary union were and still are being heavily criticized and debated. Was the design of German ...

Unchartered Territory: Large-Scale Asset Purchases by the European Central Bank

The European Central Bank (ECB) decided at its Council meeting in January to implement a comprehensive program to purchase bonds, including euro area government bonds. The purchases are intended to anchor the rate of inflation and inflation expectations at below but close to two percent again. Given the lack of experience with this unconventional monetary policy instrument, the ECB is venturing into ...

Reunification: An Economic Success Story

People’s expectations after the fall of the Berlin Wall 25 years ago and of reunification in 1990 were huge. The government promised to create “flourishing landscapes” within a few years. The euphoria of reunification came not only through the desire to finally become one country and one nation again but also had tangible economic reasons: the people from East Germany wanted better economic prospects, ...

GDP-Linked Loans for Greece

Greece is standing at a crossroads. The need for a third rescue package has now become a critical issue. The Greek government is calling for another de facto-public debt restructuring. An alternative option presented here would be to convert existing GLF loans into GDP-linked loans. Interest payments would then be linked to the development of Greece’s GDP. First, this would reduce the likelihood of ...

Making the Euro Area Fit for the Future

The crisis in the European currency area is not yet over. Although the situation in the financial markets is currently relatively calm, the economic crisis appears to be bottoming out in most countries. Nevertheless, there are still fundamental design flaws in the Monetary Union. If these are not fully addressed, it will only be a matter of time before a new crisis hits, and a partial or complete breakup ...