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 ...
This paper investigates the effect of insolvency regulation reforms on cross-border debt and equity investments at aggregate and sectoral levels. Using disaggregated data from the ECB’s Securities Holdings Statistics by Sector (SHSS) database and the OECD indicators on efficiency of insolvency regulations, we find that investors increase their debt and equity holdings in the countries that undertook ...
The German economy is steering through difficult waters and faces the highest inflation rates in decades. In their spring report, the leading German economic research institutes revise their outlook for this year significantly downward. The recovery from the COVID-19 crisis is slowing down as a result of the war in Ukraine, but remains on track. The institutes expect GDP to increase by 2.7 and 3.1 ...
This paper provides novel empirical results on the welfare impact of sanctions when countries coordinate their sanctions packages. To do so, weconduct simulations with the Caliendo and Parro (2015) CGE model of the world economy that provides changes in welfare under different hypothetical setups of sanctions coalitions. Focusing on the 2012 wave of sanctions against Iran and the 2014 sanctions...
How are individual and collective memories of extreme economic moments produced in a community? How do these memories translate into the political economy and shape the realm of possibility of macroeconomic policies? Why is some statistical data and economic policy represented more factual than other in the historical narration of national economies? How do some economic indicators become more...
As the German economy and the EU are emerging from the COVID-19 pandemic, the focus is shifting to questions of long-term transformation. How can we transform our economies while also limiting climate change and preparing for its impact? The pandemic has accelerated digitalization of German firms and many have already invested to deal with climate change. At the same time, concerns about the...
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 ...