Press releases of the CESifo Group.
Latest press releases
Ifo President Sinn Calls For Higher Interest Rates and Annual Settlement of Overdraft Credit Between Euro Central Banks
Apr 17, 2015: Ifo President Hans-Werner Sinn has called for higher interest rates on the overdraft loans between Eurosystem central banks and a yearly settlement of them. “It is unacceptable that only 0.05 percent is paid in annual interest rates and that loans never have to be repaid. Such conditions merely invite Greece to run up more debts and also encourage capital flight from the country” said Sinn on Friday in Munich. “Instead the US system should apply whereby balances between the districts of the US Federal Bank have to be settled once a year. This would make it far harder to resort to the electronic printing press, and would prompt countries facing the threat of capital flight to introduce capital controls earlier on,” argued Sinn. Details
Apr 16, 2015: The German economy is experiencing a strong upturn driven by unexpected expansive impulses, especially the falling oil price and the sharp depreciation of the euro. Gross domestic product is expected to increase by 2.1 percent this year. The 68 percent projection interval ranges from 1.1 percent to 2.8 percent. Consumption is the driving force behind the upturn. The rest of the euro area is also expected to produce slightly positive impulses, meaning that international trade will contribute to growth. The pace of growth is only expected to slow slightly in the year ahead. The euro’s depreciation will continue to stimulate the economy, while the positive effects of the lower oil price are expected to fade. Public budgets will show significant surpluses of over twenty billion euros in 2015 and 2016 respectively. In view of large structural surpluses, the time is ripe to make the income tax rate more performance-oriented – especially for small and medium-sized companies. Details
Apr 16, 2015: German economic experts have significantly upwardly revised their forecasts for this year. They now expect 2.1 percent growth in gross domestic product, after forecasting just 1.2 percent growth in autumn 2014. “The low oil price is leaving Germans more money to spend, while the weak euro is boosting exports”, said Timo Wollmershäuser, Director of the Center for Business Cycle Analysis and Surveys at the Ifo Institute, which is supervising the Joint Economic Forecast this year. In their spring forecast the research institutes expect overall economic production to increase by 1.8 percent in 2016. The unemployment rate is accordingly expected to fall to 6.3 percent in 2015 from 6.7 percent last year; and to drop further to 5.9 percent next year. Details
Apr 15, 2015: Raj Chetty, Bloomberg Professor of Economics at Harvard University, has been awarded this year’s Richard Musgrave Professorship by CESifo and the International Institute of Public Finance (IIPF). With this award, the prize winner is also named a Distinguished CESifo Fellow. Details
Apr 9, 2015: A net total of 27 billion euros in capital flowed out of Italy in March, according to a publication by the Banca d’Italia. “This could be partially due to speculative overseas bank transfers by Italian banks, which are now investing the money that they received from the European Central Bank’s bond acquisitions in the context of the QE program outside of Italy,” explained Ifo President Hans-Werner Sinn. Details