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DIW Weekly Report 8 / 2023
Energy prices have risen sharply as a result of the coronavirus pandemic as well as the Russian attack on Ukraine in February 2022. The resulting consumer price inflation is forcing the European Central Bank (ECB) to act in accordance with its mandate. However, the ECB expresses doubts that it will be able to have an impact on the price increases. As this Weekly Report based on an analysis of structural ...
2023| Gökhan Ider, Alexander Kriwoluzky, Frederik Kurcz, Ben Schumann
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DIW Weekly Report 6 / 2023
In August 2022, the US Congress passed the Inflation Reduction Act (IRA), a comprehensive piece of legislation aiming to stimulate the US economy and to increase its resilience. At an estimated 430 billion euros, it is a massive government investment and spending program in the welfare state, federal infrastructure, climate action, and environmental protection. At the same time, the IRA is intended ...
2023| Kerstin Bernoth, Josefin Meyer
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DIW Weekly Report 1/2 / 2023
Following the construction boom of recent years in Germany, inflation and supply bottlenecks hit the industry hard in 2022. While nominal construction volume increased by nearly 14 percent, it decreased by two percent when adjusted for inflation. Residential construction, which is urgently needed, was particularly affected. In 2023 and 2024, it is expected that investors will show restraint and that ...
2023| Martin Gornig, Laura Pagenhardt
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DIW Weekly Report 40 / 2022
Since the beginning of 2022, monetary policy in the euro area has been gradually normalizing. As a result, bond yields of highly indebted countries such as Italy and Greece are rising more sharply than those of countries with less debt, such as Germany, a development referred to as bond market fragmentation. To ensure the coherent effectiveness of monetary policy on economic developments and, ultimately, ...
2022| Kerstin Bernoth, Sara Dietz, Gökhan Ider, Rosa María Lastra
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DIW Weekly Report 24/25 / 2022
May 2022 marked the 90th anniversary of the end of Heinrich Brüning’s term as Reich Chancellor. To this day, the economic effects of Brüning’s extreme austerity measures remain unclear. However, new data and calculations have made an initial quantification of the economic consequences of Brüning’s policies possible. An analysis based on a time series model illustrates how the Weimar Republic’s economy ...
2022| Stephanie Ettmeier, Alexander Kriwoluzky
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DIW Weekly Report 21 / 2022
In February 2022, the EU Commission announced economic sanctions against Russian oligarchs. The goal was to exert pressure on the Kremlin: initially to stop deploying troops to the Donetsk and Luhansk regions and ultimately to end its attack on Ukraine. The present report investigates how these sanctions affect companies headed by Russian oligarchs. The empirical findings show that after sanctions ...
2022| Franziska Bremus, Pia Hüttl
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DIW Weekly Report 14/15/16 / 2022
Inflation has been growing considerably since the middle of 2021, with rising energy prices driving the increase in particular. Since the end of February 2022, the trend has also been exacerbated by the ongoing Russian invasion of Ukraine. To keep prices stable, the European Central Bank must rein in its accommodative monetary policy. However, would doing so—by enacting an interest rate increase, for ...
2022| Gökhan Ider, Alexander Kriwoluzky, Frederik Kurcz
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DIW Weekly Report 12 / 2022
Over the course of the 20th century, governments have frequently used rent control to keep rents affordable, especially in times of crisis when housing is scarce. Existing research shows that rent control has undesirable side effects, such as overall societal welfare losses, market misallocation, a declining housing supply, and lower mobility. However, there has been little research examining the effect ...
2022| Konstantin A. Kholodilin, Sebastian Kohl
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DIW Weekly Report 7/8 / 2022
The Omicron wave of the coronavirus has impacted economies worldwide, resulting in a bleak winter. Although restrictions on economic and public life have been less severe than at the beginning of 2021 in many places—mainly due to the progress of vaccination campaigns—and there are prospects of easing restrictions in Germany as well, the labor shortage caused by the current rates of infection is noticeable. ...
2022| Guido Baldi, Paul Berenberg-Gossler, Hella Engerer, Simon Junker, Konstantin A. Kholodilin, Frederik Kurcz, Laura Pagenhardt
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DIW Weekly Report 1/2 / 2022
Sales in the construction industry will continue to increase strongly in 2022 and 2023. Overall, DIW Berlin estimates a nominal increase in construction volume of almost 13 percent in 2022 and six percent in 2023 to 585 billion euros. In 2021, construction volume increased by ten percent to 488 billion euros, which is around 15 percent of GDP. This shows that construction demand remains at a high level ...
2022| Martin Gornig, Claus Michelsen, Laura Pagenhardt