Economic Policy Public Finances and Financial Economics ZEIT ONLINE op-ed column

No envy, please!

This text was also published in German in  ZEIT ONLINE on February 3,  as part of the op-ed column “Fratzschers Verteilungsfragen“.

“Time for fairness“ is the motto of the new candidate for Chancellor of the German Social Democrats, Martin Schulz, in his campaign against Angela Merkel. The slogan is bound to strike a chord in a country where 70 percent of the people feel that inequality is too high. But the issue of fairness should not be the one at … [continue reading]

Read more
Currency and Financial Markets Macroeconomics Monetary Policy

“In an International Comparison, Too Little Is Being Invested in German Industry”: Six Questions to Marcel Fratzscher

  1. Mr. Fratzscher, there are concerns about an overall lack of investment in Germany. Is the problem more urgent in the public sector or in the private sector?
    The investment gap exists in both the public and private sector. Three years ago, we calculated that Germany’s investment gap amounts to roughly 75 billion euros per year. The investment gap has also been confirmed by other studies. The problem is definitely more urgent in the private sector.
[continue reading] Read more
Currency and Financial Markets Europe Monetary Policy

The ECB’s dilemma

by Marcel Fratzscher, Michael Hüther and Guntram B. Wolff.
This text was also published on
BerlinOeconomicus (German), in Le Monde  and in El País.

As the ECB is likely to announce a government bond purchase programme on January 22, the opposition in Germany is growing. The potential election of a government in Greece with its intention to restructure debt towards its official creditors puts the upcoming ECB’s decision under even greater scrutiny. The fact that the ECB has … [continue reading]

Read more
Business Cycles, Growth, Economic Structure Public Finances and Financial Economics

“A force d’économies, notre patrimoine a perdu énormément de valeur”

This interview was first published in Les Echos on 15 September 2014.

Ancien économiste à la Banque centrale européenne, Marcel Fratzscher publie vendredi un nouveau livre «L’Illusion allemande», dans lequel il critique l’arrogance d’un pays qui se considère comme exemplaire mais dont l’économie présente aussi deréels handicaps.

Selon un rapport du Bundesrat, 20 % des autoroutes et 46 % des ponts routiers en Allemagne sont vétustes. Comment en est-on arrivé là ?

Jusqu’aux années 1980, l’Allemagne avait d’excellentes infrastructures et … [continue reading]

Read more
Business Cycles, Growth, Economic Structure Europe Foreign Trade and International Economic Relations Public Finances and Financial Economics

The German locomotive has become Europe’s liability

This article was first published on on 27 August 2014.

The news that German output declined in the second quarter has dented the country’s economic euphoria, but only a little.

Many blame the Ukraine crisis and transient factors such as the mild winter, and believe that Europe’s largest economy remains fundamentally strong. They are wrong. Germany’s disappointing performance mostly reflects structural weaknesses, both at home and in the eurozone. Policy makers should act quickly, before the problems become further … [continue reading]

Read more
Currency and Financial Markets Europe

Temporary End of the OMT Programme

The German Constitutional Court today declared that the OMT programme of the European Central Bank (ECB) constitutes a violation of European law, and asked the European Court of Justice to confirm its ruling. The curiosity is that the German Constitutional Court has no mandate to issue such a ruling on European law, as stressed by the two dissenting judges.

The ruling implies a temporary end to the OMT programme, as it would be highly controversial for the ECB to implement … [continue reading]

Read more