Neben einem konjunkturellen Einbruch leidet Deutschland vor allem unter strukturellenProblemen, wie Unsicherheiten bei der Energieversorgung, einer zu hohen Steuer- undAbgabenlast, einer ausufernden Bürokratie sowie unter Arbeits- und Fachkräftemangel. Dabeiwird als Folge eine...

With its judgement on the federal budget, the German Federal Constitutional Court has thrown the government's financial planning into disarray. Important public investments are at stake, as the debt brake sets tight limits for the treasury and debt-financed shadow budgets. But the green...

We examine global economic dynamics under infinite-horizon learning in a New Keynesian model in which the interest-rate rule is subject to the zero lower bound. As in Evans, Guse and Honkapohja (2008), we find that under normal monetary and fiscal policy the intended steady state is locally but...

We examine global economic dynamics under learning in a New Keynesian model in which the interest-rate rule is subject to the zero lower bound. Under normal monetary and fiscal policy, the intended steady state is locally but not globally stable. Large pessimistic shocks to expectations can lead...

We examine global dynamics under infinite-horizon learning in New Keynesian models where the interest-rate rule is subject to the zero lower bound. As in Evans, Guse and Honkapohja (2008), the intended steady state is locally but not globally stable. Unstable deflationary paths emerge after...

We consider inflation and government debt dynamics when monetary policy employs a global interest rate rule and private agents forecast using adaptive learning. Because of the zero lower bound on interest rates, active interest rate rules are known to imply the existence of a second, low...

The sharp rise in energy prices represents a considerable structural risk to the German economy. Deindustrialisation has become a veritable threat. The government's economic policy needs to establish positive expectations for energy costs in the medium term through interventions in the gas and...