Macroeconomics Department Publications

Sustainable Financial Markets: Financial Transaction Tax and High Capital Buffers Indispensable

The sustainability of the financial markets is a requirement that has only appeared on the economic policy agenda very recently, whereas a stable financial system has been a declared goal for decades. The relationship between sustainability and stability is, however, still unclear. The two terms are often used synonymously but stability is only one part of sustainability. The following outlines the ...

A Transfer Mechanism as a Stabilization Tool in the EMU

With the crisis in the euro area, the issue of the institutional structure of the monetary union has gained in significance. One problem with regard to the longer-term stability of the euro area is the absence of mechanisms to adequately absorb asymmetric cyclical shocks in the individual member states. Such an instrument is essential in order to be able to implement a single monetary policy suitable ...

German Cities to See Further Rises in Housing Prices and Rents in 2013

Over the past few years, prices and rents for flats went up in most German cities. This trend is expected to continue in 2013. Berlin, Hamburg, Munich, and Frankfurt am Main will still see the highest increases in property prices and rents. In these cities, housing prices are rising much faster than rents. By contrast, stagnating or even falling prices are forecast for the cities in the Ruhr area. ...

Need for Reform of EU Banking: Decoupling the Solvency of Banks and Sovereigns

Recent developments in Ireland, Greece, and Spain have shown that sovereign debt crises endanger the solvency of domestic banking sectors, while banking crises in turn endanger the solvency of the domestic sovereigns. This diabolic loop between government and bank solvency is exacerbated by the home bias in banks' government bond portfolios, that is, banks' excessive exposure to domestic sovereign ...

Spreading the Risk: Nine Questions to Claudia Kemfert and Dorothea Schäfer

Financing the Energy Transition in Times of Financial Market Instability

One of the most pressing public priorities in Germany at present is how to organize the energy transition. However, the cost of stabilizing the financial sector as well as the fiscal pact and the debt brake mean that the government has limited financial resources. Consequently, the availability of private capital, whether in the form of equity or debt, is becoming a decisive factor in the success of ...

Income Distribution: An Important Factor for Economic Forecasts

The development of private consumption is a crucial factor in compiling macroeconomic projections as part of national accounts. Household savings also play an important role as an explanatory variable for consumer development, since private households must decide whether to spend their incomes on consumption or saving. The estimated savings rate in DIW Berlin's economic projections can be improved ...

Vollständige europäische Bankenunion würde Finanzierungskosten senken und Investitionen ankurbeln

Die Finalisierung der Banken- und Kapitalmarktunion steht schon lange auf der Agenda diverser Bundesregierungen. Sie wurde aber immer wieder verzögert. Der überraschende Vorstoß der italienischen Bank Unicredit, die deutsche Commerzbank zu übernehmen, machte Ende letzten Jahres deutlich, wie wichtig es ist, die Bankenunion voranzutreiben. Eine solche Bankenunion würde nicht nur dazu beitragen, ein ...

Sondervermögen allein reichen nicht – Fünf dringende Maßnahmen für den Standort Deutschland

Deutschlands Wettbewerbsfähigkeit erodiert, weil die Standortbedingungen für Investitionen nicht mehr stimmen. Das diagnostizieren auch Union und SPD in ihrem Sondierungspapier. Leider zeigt sich, dass die darin vorgeschlagenen Maßnahmen unzureichend und von Partikularinteressen getrieben sind. Dabei müssen fünf wichtige Rahmenbedingungen gezielt verbessert werden: analoge sowie digitale Infrastruktur, ...

Sondervermögen für Infrastruktur: 500-Milliarden-Euro-Investitionspaket würde deutsche Wirtschaft aus der Krise holen

Das von CDU/CSU und SPD bereits vor möglichen Koalitionsverhandlungen angekündigte Sondervermögen für Infrastruktur dürfte die deutsche Wirtschaft kräftig anschieben, sollte es tatsächlich verabschiedet werden – allerdings erst ab dem kommenden Jahr. Berechnungen des DIW Berlin zufolge würde die Wirtschaftsleistung infolge des 500-Milliarden-Euro-Investitionspakets im kommenden Jahr um etwa ein Prozent ...