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News from Ifo Institute, CESifo and the Center for Economic Studies (CES)

Latest news


  1. Credit Constraints Fall to Historic Low

    teaserImage Credit constraints for German companies fell to 17.1 percent in January from 17.4 percent last month. This marks a new historical low. The financing conditions for German companies remain excellent at the beginning of 2015. The drop in credit constraints reflects the inflationary flood of money that banks expect from the European Central Bank. Details

  2. Negative Interest Rates Levied By Commercial Banks and Their Impact

    teaserImage In mid-2014 the European Central Bank began charging negative interest rates on bank deposits. Last autumn several banks started passing these costs on to private investors with very high total deposits. The implications of this development are discussed by Hans-Peter Burghof, University of Hohenheim, Max Otte, University of Graz, Tobias Tröger, Goethe University Frankfurt am Main, Ansgar Belke, University Duisburg-Essen, Thorsten Polleit, Degussa and University of Bayreuth, and Martin Klein, Martin Luther University Halle-Wittenberg, in ifo Schnelldienst 2/2015. Details

  3. Ifo Business Climate for Eastern Germany Starts the Year Cautious, but Positive

    teaserImage The Ifo Business Climate Index for the Eastern German Länder rose only slightly at the beginning of the year. The improvement in the business climate was due to better assessments of the current business situation on the part of Eastern German companies. In terms of business expectations, by contrast, Eastern German survey participants are somewhat more pessimistic. The recovery seen in the Eastern German economy in the fourth quarter of 2014 continued at the beginning of 2015. Details

  4. Export Outlook for German Manufacturing Continues to Brighten

    teaserImage German manufacturers expect exports to rise. The Ifo Export Expectations rose for the fourth time in succession in January to 9.5 balance points from 7.7 balance points in December. Exports, which were already very high, were given an additional boost by the sharp drop in the euro exchange rate. Details

  5. German Firms Step Up Search for Extra Staff

    teaserImage The economic upturn is prompting a growing number of German firms to look for additional staff. The Ifo Employment Barometer rose to 108.2 index points in January from 106.6 points in December, reaching its highest value since March 2012. Service providers remain the main driver behind this development. Details

  6. Multinational Companies and Profit Shifting

    teaserImage Reports on the tax evasion strategies of multinational corporations (MNCs) like Google, Amazon or Starbucks have outraged the public. The key policy question arising from these revelations is how profit shifting can be avoided by using international rules and regulations. In the CESifo DICE Report 4/2014 different experts shed light on various forms of tax evasion strategies and discuss propositions to reform or improve the enforcement of the existing regulations. Details

  7. Exports and the Impact of State Credit Guarantees

    teaserImage The Federal Republic of Germany has issued export credit guarantees for over 60 years (Hermes guarantees). In CESifo Working Paper 5176 Inga Heiland and Erdal Yalcin, both from the Ifo Institute, build a model that shows the relationship between capital market frictions and corporate financing costs, and reveals potential cost advantages for the government. Their empirical analysis shows that state credit guarantees boost companies’ exports. This effect is stronger for firms that are dependent on external finance, if the value at risk is large, and at times when refinancing conditions are tight. Details

  8. Ifo Business Climate Index Continues to Rise

    teaserImage The Ifo Business Climate Index for industry and trade in Germany rose to 106.7 points in January from 105.5 points last month, marking its third successive increase. Companies were far more satisfied with their current business situation and the majority was also optimistic about the business outlook. The German economy makes a good start to the year. Details

  9. German Service Sector: Ifo Business Climate Indicator for the Service Sector Edges Downwards

    teaserImage The Ifo Business Climate Indicator for the German service sector fell to 24.5 balance points in January, from 25.8 points in the previous month. Service providers slightly scaled back their assessments of the current business situation, which nevertheless remain at a high level. Their business expectations are also slightly less optimistic than in December. The share of service providers planning price increases continued to rise. Details

  10. TTIP’s Potential Impact on Third Countries

    teaserImage TTIP will not only affect its negotiation partners, but will also potentially impact developing and emerging economies. On the one hand, higher income in the EU and the USA will increase demand for goods and services in third countries, which should benefit them. On the other hand, the agreement can be expected to divert trade flows from TTIP partners away from third countries, which will be detrimental to them. In a new study commissioned by the German Federal Ministry for Economic Cooperation and Development, the Ifo Institute and the IAW Tübingen jointly explore how threats to emerging countries can be minimised and opportunities can be maximised, to turn the agreement into the basis for a new and fair world trading system. Details


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