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Your search for inflation had the following results: 15 hits
Statement — 11 October 2023

ifo Viewpoint 253: Should the German Minimum Wage Increase to EUR 14 Now?

When politicians introduced the statutory minimum wage in Germany, critics warned that it might become the subject of a bidding war in election campaigns. The solution was a commission formed by representatives of trade unions and employers to propose minimum wage increases, based on the index of collectively agreed wages. The minimum wage was to follow general wage trends, not the other way around, and for a few years this worked well. But during the 2021 federal election campaign – when the minimum wage was EUR 9.60 per hour – some parties called for an increase to EUR 12. The traffic light coalition implemented this demand in 2022.

 

 

 

Statement — 28 September 2023

ifo Viewpoint 252: An Interest Rate Cap Would Not Be a Good Idea

Currently, rising interest rates are making life difficult for borrowers. Anyone who has debts with flexible interest rates or wants to buy an apartment must expect interest rates of 4 % and more. Two years ago, it was often less than half that. The situation is similar for people who take out a loan to buy a car or who simply overdraw their account. In Austria, there have now been calls for the government to intervene and introduce an interest rate cap. Interest on overdrafts on a checking account should be limited to a maximum of 5 %, and the maximum interest rate for real estate loans should be 3 %. What are we to make of this? 

Statement — 4 April 2023

ifo Viewpoint 246: The Current Banking Quake: Where Does It Come from and What Should Policy Makers Do?

The crises at Silicon Valley Bank and Credit Suisse have shaken the world of finance. While policymakers and central banks are being placatory, the markets are not calming down. Banks that very recently seemed healthy are running into liquidity problems. 

Statement — 21 March 2023

ifo Viewpoint 244: Europe’s Industrial Policy and the Response to IRA

Europe is seeing a renaissance in industrial policy. Industrial policy usually involves influencing an economy’s sectoral development by means of subsidies, partial state ownership of companies, or regulations. It can also include promoting mergers of companies to form national champions – large companies which are supposed to conquer the world’s markets with their governments’ support. It’s also common to bar foreign investors from taking over domestic companies that are deemed strategically important.

Statement — 12 August 2022

ifo Viewpoint 240: The ECB’s Toxic Bond-Purchase Program

It is unclear why the European Central Bank has introduced a new asset-purchase instrument instead of using its existing Outright Monetary Transactions facility. By shielding countries from both market forces and political commitments, the Transmission Protection Instrument risks destabilizing European monetary union.

Statement — 9 August 2022

ifo Viewpoint 239: The Government Should Stay out of Wage Policy — Supply-Side Reforms Make More Sense in the Fight against Inflation

How can inflation be contained in Germany? Wages are currently playing a major role in this discussion. Trade unions point out that the current inflation rate of more than 8 percent is reducing employees’ real incomes. 

Statement — 1 July 2022

ifo Viewpoint 238: Don’t Raise the Eurozone’s Public-Debt Limit

In February 2020, the European Commission announced that it would present a plan for reforming the eurozone’s economic governance, including the rules for public debt. After a lengthy postponement due to the Covid-19 pandemic, the project is now back on the table, amid widespread calls to give governments more leeway, for example to finance climate protection spending. 

Statement — 3 June 2022

ifo Viewpoint 236: We Must Not Undermine the Signaling Function of Price!

The German government’s relief package is well-intentioned. But regulation and subsidies aren’t a sustainable way to combat inflation.

Statement — 4 March 2022

ifo Viewpoint 234: Economic Consequences of the Russian Invasion of Ukraine

The war in Ukraine is not only a military and geopolitical turning point. It is also changing the economic situation. This affects both the short-term economic trend and the medium-term prospects for growth and prosperity. The previously expected economic recovery will be weakened. There is a threat of stagflation, i.e., a combination of weak growth and high inflation. Monetary policy faces a dilemma: while interest rate hikes can curb inflation, they would further dampen growth. 

Statement — 28 May 2021

ifo Viewpoint 224: Central Bank Swerving from Its Path

The Executive Board of the European Central Bank (ECB) wants to make monetary policy “greener.” Hardly a week goes by without the topic being promoted by one of the board members. In addition to the visible effort to make the traditionally dry seeming monetary policy appear practically helpful and close to the people, the ECB’s activities in the matter itself amount to a further significant expansion of its competencies. This involves, first, independently assessing the environmental friendliness of projects financed by corporate bonds; and second, giving preference to positively rated projects in various securities transactions.

Statement — 10 February 2020

ifo Viewpoint 214: Neodirigism

Bank failures, economic inequality, populism, train delays, lack of housing, pollution – all this is laid at the feet of neoliberalism. Neoliberal policies are often named as a cause of social and economic grievances. The term actually refers to a historical school of though that, in response to the world economic crisis of the late 1920s and early 1930s, demanded not less but rather more government action to establish conditions that would improve the functioning of the economy. However, people who use the term nowadays are usually referring to a disproportionate faith in the market and the state’s withdrawal from areas where it is actually needed.

Statement — 12 March 2019

ifo Viewpoint No. 203: Tax-Cut Time for Germany?

ifo President Clemens Fuest is in favor of reducing corporate taxes in the current ifo Viewpoint.

Statement — 13 November 2017

ifo Viewpoint No. 190: Sustainable Fiscal Policy Calls for More Restrictive Debt Rules for Eurozone

One of the key issues on the table in the coalition negotiations is the next German federal government’s position on reforming European Monetary Union. One of the highly controversial topics under discussion is the future of European debt rules. Critics claim that the current rules are too restrictive and will hamper public investment. In reality, a serious application of the existing concepts for ensuring sustainable fiscal policy would call for stricter, not softer debt rules.

Statement — 14 November 2016

Ifo Viewpoint No. 180: The Economic Consequences of Mr. Trump

Politicians across Europe are still reeling at the shock election of Donald Trump as US President. That is understandable. They nevertheless need to snap out of it and start thinking seriously about how Trump’s triumph will impact Europe both economically and politically. The question on everybody’s lips is: how much of his election campaign rhetoric will Trump actually attempt to turn into economic policy and how should Europe react? Although his policy proposals to date have been hazy on detail, a fairly clear picture of Trump’s position has nevertheless emerged in four key areas.

Statement — 15 August 2016

Ifo Viewpoint No. 177: Income tax relief can be financed

Taxation policy could be a major campaign issue in Germany in the coming year. The CDU SME Business Union has recently called for a lowering of the income tax in Germany. Tax cuts have not played a major role in the economic and fiscal policy debates of recent years, for various reasons. Firstly, after anchoring the “debt brake” in the German constitution, the reduction in public deficits has been the focus of attention. Secondly, in recent years the debt crisis in the euro area has kept politicians on tenterhooks.