inequality ZEIT ONLINE op-ed column

The Shrinkage in Earned Income

This text was also published in German in ZEIT ONLINE on May 12 as part of the op-ed column “Fratzschers Verteilungsfragen“.

The International Monetary Fund (IMF) has attracted attention with its most recent World Economic Outlook. The report shows that the global workforce is receiving a decreasing proportion of economic output, whereas owners of capital are claiming a larger piece of the pie for themselves. Germany stands out as one of the countries where the proportion benefiting workers is … [continue reading]

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Economic Policy Europe Foreign Trade and International Economic Relations

Investment, not the surplus, is Germany’s big problem

This article was first published on on 18th November 2013.

Germany is under attack from the US government, the International Monetary Fund and the European Commission for its huge current account surplus. The criticism is right, but for the wrong reasons. The surplus is excessive, but the accusation that it hurts Europe is nonsense. Worse, it distracts German policy makers from tackling the true cause of the national surplus and the country’s economic Achilles heel: its huge private investment … [continue reading]

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