Press releases of the CESifo Group.
Latest press releases
Oct 17, 2014: “Politicians are mistaken if they think that the statutory minimum wage recently passed by the German Parliament will not dampen economic activity and growth prospects”, says Niklas Potrafke, head of the Ifo Centre for Public Finance and Political Economy. “In fact, the minimum wage, which will take effect in January, is already subduing economic and growth prospects as businesses proactively factor in this prescribed wage level. The companies have anticipated that unit labour costs will rise and accordingly are already investing less. This is clouding the economic outlook and dampening long-term economic growth.” Details
Oct 14, 2014: Ifo President Hans-Werner Sinn berates the purchase of government bonds by the European Central Bank (ECB). Commenting on the European Court of Justice proceedings, Sinn said: “The financial markets have only been calmed by the fact that the investment risk has been shifted from the clever gamblers behind screens to taxpayers who are acting in good faith. That is cynical. We allow investors to escape rather than bearing the consequences of their decisions. Ordinary people are being turned into hostages of the financial markets and speculators, who are forcing politicians to take measures that the majority of these ordinary people may not want. It has to stop. There are also normal citizens who need to be calmed, not just the markets.” Details
Oct 13, 2014: Jean Tirole, Distinguished CES Fellow 1996, has been awarded the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel for 2014. Described by colleagues as “one of the most productive, original and ultimately socially useful economists of his generation,” Mr Tirole was honoured by the Academy for his work on market power and regulation, and on taming powerful firms. Details
Oct 13, 2014: The Ifo Institute is astonished by statements in the media that the Joint Economic Forecast allegedly repudiates the German Federal government’s aim to achieve a balanced budget as an “object of prestige”. On the contrary, the institutes explicitly welcome the aim of a balanced budget in their Joint Economic Forecast and oppose further economic stimulus packages. The concept of a balanced budget is a highly meaningful “object of prestige” for Germany that should be respected in order to maintain the country’s credit-worthiness. The scope for investments and reductions to the tax burden referred to in the forecast is generated by the budget surpluses to be expected this year and in 2014. It is a misrepresentation of the forecast to interpret these references as calls for further borrowing. No such calls are made at any point in the forecast text. Details
Joint Economic Forecast for Autumn 2014: German Economy Stagnating – Now is the Time To Strengthen Growth
Oct 9, 2014: The German economy will grow by 1.3 percent this year and by 1.2 percent in 2015, predict the economic research institutes involved in the Joint Economic Forecast in their autumn report. According to the report, Germany’s economy has cooled down markedly. With economic output falling in the second quarter and stagnating in the third quarter of 2014, the engine for economic growth is proving hard to rev up again. Both domestic and foreign demand is weak: the consumer climate deteriorated recently and companies remain cautious about investment. The moderate pace of growth in the world economy and the low level of economic impetus in the euro area over the forecasting period are also having a negative impact. In this environment the economic research institutes are in favour of strengthening growth and creating more favourable investment conditions. They see financial scope for a more investment-friendly tax system and higher spending on areas that promote growth like physical and human capital. Details