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Press Release
DIW Berlin study shows that Brexit vote-related uncertainty will do considerable damage to the European and German economies in a way that will be noticeable even two years from now – since the German economy is primarily affected by sinking business investment, policy should be more oriented toward promoting investment
Uncertainty plays a major role in the economy overall – but what are ...
10.08.2016
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Interview
Dr. Rieth, you’ve investigated the possible consequences of the recent spike in uncertainty related to the Brexit vote. How exactly did you measure the change in economic uncertainty here?
We isolated one specific aspect that was undoubtedly related to the “Leave” vote: the change in economic uncertainty that took place overnight between June 23 and June 24, 2016. We tried ...
10.08.2016
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Press Release
Brexit putting a strain on trade and dampening investment across the globe – German economy likely to be affected – uncertainty about exports – investment will be restrained, and both income and consumption will lose momentum
Due to the Brexit decision, the German economy is expected to grow by 0.1 percentage points less this year and by 0.3 percentage points less next year than ...
05.08.2016
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Report
The United Kingdom's exit from the European Union will have far-reaching implications for the British financial sector. London is currently the financial capital of Europe, and the UK's financial institutions benefit from passport rights that allow them to provide their services throughout the Single Market. The UK plays two key roles in the European financial system: the first as a major hub for wholesale ...
05.08.2016
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Report
Following the financial crisis of 2008/09, the Basel Committee on Banking Supervision introduced a new framework for banking regulation, commonly known as Basel III. For the first time since the inception of global banking regulation in 1988, Basel III contains explicit mandatory rules for liquidity regulation. The cornerstones of the new liquidity regulation are two balance sheet ratios that seek ...
25.05.2016
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Press Release
DIW Berlin claims that the US Federal Reserve’s decision to end its zero interest-rate policy has not caused turbulence in financial markets
According to a recent analysis conducted by the German Institute for Economic Research (DIW Berlin), the interest rate lift-off introduced by the US Federal Reserve at the end of last year has not led to distortions in the financial markets. Financing costs ...
15.04.2016
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Interview
Mr. Fratzscher, there are concerns about an overall lack of investment in Germany. Is the problem more urgent in the public sector or in the private sector?
The investment gap exists in both the public and private sector. Three years ago, we calculated that Germany’s investment gap amounts to roughly 75 billion euros per year. The investment gap has also been confirmed by ...
15.04.2016
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Interview
Dr. Grosse Steffen, since the end of 2008, the US policy interest rate was at the level it has only just reached in Europe, that is, at the zero lower bound. In December, the Federal Reserve decided to raise the interest rate in the US. What was the motivation for the ‘lift-off’?
The reason to increase the federal funds rate is that the US economy has been experiencing strong growth for ...
07.04.2016
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Press Release
Greater transparency of the national banks of the euro area would strengthen Eurosystem credibility. The allegation that the European Central Bank (ECB) is engaging in illegal monetary financing under the guise of ANFA (Agreement on Net Financial Assets) seems to be unfounded—there is simply no evidence for it, claims the German Institute for Economic Research (DIW Berlin) based on their ...
29.03.2016
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Interview
Dr. König, the Agreement on Net Financial Assets (ANFA) was drawn up to prevent conflict between the NCBs and the European Central Bank (ECB) over monetary policy. What exactly is the background to this agreement?
ANFA limits the national central banks’ purchases of financial assets and securities in order to ensure effective implementation of the single monetary policy in the euro area. [...]
The ...
29.03.2016
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Press Release
European Central Bank (ECB) supports prices, economic activity, and inflation expectations through unconventional measures both in the euro area as a whole and in Germany - but the measures are likely to raise wealth inequality in the short termThe ECB’s ultra-loose monetary policy aimed at easing the financial and debt crisis is making an impact. Prices and GDP have been shored up and inflation ...
17.02.2016
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Interview
Prof. Bernoth, the European Central Bank (ECB) decided to implement a large-scale bond purchasing program in January 2015 to avert the risk of deflation in the euro area. To what extent might these bond purchases also affect wealth distribution?
Considerable wealth distribution effects may occur through the impact channels of monetary policy because interest rate changes introduced by the central ...
17.02.2016
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Press Release
DIW economists simulate various scenarios based on different assumptions – in every projected scenario, investment pays off in the longer term – successful integration will increase per capita income of Germany’s current population
The recent influx of refugees has created enormous challenges for politicians and society at large - but according to a simulation conducted by economists ...
12.11.2015
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Press Release
Russian economy suffering due to weaker local currency – depreciation of the ruble primarily due to the drop in oil prices, not to sanctions
Since 2014, the ruble has fallen by more than 50 percent against the U.S. dollar—and this devaluation is putting the Russian economy under pressure. A study conducted by the German Institute for Economic Research (DIW Berlin) has concluded that the ...
29.10.2015
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Interview
Mr. Kholodilin, how has the value of the ruble changed over the past few years?
The exchange rate of Russian ruble has dropped considerably. In 2013, one euro was worth roughly 40 rubles; now, one euro is worth around 70 rubles. This devaluation is much stronger than it was during the Great Recession of 2008–2009.
This interview with Konstantin Kholodilin is published in DIW ...
28.10.2015
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Press Release
Persistent lack of investment among municipalities – social expenditures diminishing financial leeway – structurally weak regions threatening to fall further behind – DIW experts recommend temporarily making use of solidarity contributions to relieve municipalities of social expenditures
Investment in public infrastructure is critical for ensuring competitiveness and creating growth ...
22.10.2015
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Press Release
German monetary union on July 1, 1990 was politically necessary despite painful economic consequences – Greece, similar to the GDR back in the 1980s, in urgent need of reform – the crisis of European monetary union potentially boosts integration
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 ...
02.07.2015
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Interview
Professor Fratzscher, German monetary union came into force 25 years ago on July 1, 1990. On the same day, capital controls in Europe were removed, laying the foundations for a European monetary union and the euro. What lessons can Europe learn from the German monetary union?In 1990, there was considerable criticism because German monetary union was implemented so rapidly. In hindsight, I think that ...
01.07.2015
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Press Release
A tightening of capital requirements for banks that invest in EU government bonds would primarily create a significant additional demand for capital for Greek banks. This is the conclusion of a study conducted by the German Institute for Economic Research (DIW Berlin), which calculated the additional capital requirements such a reform would create for German, French, Swedish, and Greek banks. As of ...
13.05.2015
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Interview
The interview with Prof. Dr. Dorothea Schäfer is published in DIW Economic Bulletin 20/2015. It is available for download as pdf document.
More issues of DIW Economic Bulletin
13.05.2015