I study the transmission mechanism of Quantitative Easing (QE) in the form of large-scale asset purchases in the mortgage market to aggregate consumption. To this end, I develop a New Keynesian model that features heterogeneous households, a microfounded housing market, and frictional intermediation. This model helps explain the empirical evidence suggesting that QE increases aggregate consumption ...
We study the effects of movements in aggregate lending standards on macroeconomic aggregates and inequality. We show in a New Keynesian model with heterogeneous households and housing that a looser loan-to-value (LTV) ratio stimulates housing demand, nondurable consumption, and output. Our model implies that the LTV shock transmits to macroeconomic aggregates through higher household liquidity and ...
The German economy is slowly emerging from its trough. After a bumpy start to the year, which was marked by tariff-related special effects, growth in 2025 remains subdued at 0.2 percent. However, the economy is gradually picking up speed from the current third quarter onwards. Over the next two years, this will translate into noticeable economic growth of 1.7 and 1.8 percent annually, respectively. ...
German economy poised for upturn thanks to fiscal package; uncertainties in the global economy German Economy Global Economy Links and Downloads German economy emerging from economic slump; after a bumpy start to the year, things are slowly looking up; small growth of 0.2 percent expected this year Upturn imminent thanks to fiscal package for infrastructure and climate protection, higher defense spending ...
Populist parties increasingly deploy narratives of social injustice to portray climate policy as elitist and unfair. This paper investigates how such narratives affect public attitudes toward populism and democratic institutions. We conduct a survey experiment with approximately 1,600 respondents in Germany, exposing participants to three common narratives about the distributional costs of climate ...
The fertility decline is everywhere in the world today. Moreover, the decline goes decades back in the histories of rich countries. Birthrates have been below replacement in the U.S. and Europe since the mid-1970s, although further declines occurred after the Great Recession. The reasons for the declines from the 1970s to the early 2000s involve greater female autonomy and a mismatch between the...
Stock market participation among working household heads jumped upwards in 2020 – in Germany by about 25%. A major cause is the required use of work from home (WfH). We show this by adding WfH to a large set of explanatory variables. Moreover, we implement an instrumental variables estimation based on industry-specific levels of WfH-capacity. The transmission channels seem to work via increased available ...
