Noticing the adoption of unconventional measures of monetary policy in major currency areas on the one hand and continuing globalisation and integration of international financial markets on the other hand, we analyse the linkages between monetary policy and asset prices. Apart from excess asset valuation, we consider second order dynamics (uncertainties, tail risks) as specific threats to...
If the present behavior of forward-looking economic agents is driven by their expectations about the future, can governments influence the economy by creating expectations? We study this question in the context of one of the most consequential macroeconomic success stories of the 20th century that has, to date, defied the explanations advanced within the literature: the recovery of the German...
The objective of the project is to analyze the effects of long enduring low interest rates on household investment behavior, setting a special focus on the stock market participation of German and US households. In particular, we address four questions within the project. Did the low interest rate environment induced more households to enter the stock market? How does a low interest rate...
The aim of this project is to estimate the impact of monetary policy on structural reforms in the euro area. We first identify exogenous ECB policy changes through an event study that extracts the unexpected variation in euro area interest rates on policy announcement days. We estimate then the effect of monetary policy shocks on the number of reforms and investigate whether the effect is stronger...
After being commissioned by the Federal Ministry of Finance, researchers at DIW Berlin and the ifo Institute prepare short-term expert reports and analyses on national, European and international financial, tax and fiscal policy issues.
Conceptual and organizational planning and implementation of workshops on current financial and economic policy issues in close coordination with staff members at the Federal Ministry of Finance (BMF).
Job mobility equilibrates disparities in local labour markets and influences the job-matching efficiency. We specify a matching function with regional, occupational and combined regional–occupational spillovers of unemployed and vacancies. To construct these spillovers, we use information on regional proximities and occupational similarities. Based on novel German data on new hires, the unemployed ...
