In recent studies the IMF and the OECD claim that inequality has a negative impact on economic growth and conclude that redistribution policies have no adverse growth effects. We argue that this claim is misleading. We show that, for developed countries, the correlation between inequality and...

This paper contributes to the current debate how a faster implementation of structural reforms fostering the process of economic convergence in Europe can be achieved. We discuss the rationale and potential adverse effects of providing financial incentives for structural reforms. After a...

At the beginning of June 2020, the German government launched a comprehensive economic stimulus package to promote economic recovery. With a volume of EUR 130 billion, this program far outstrips programs launched in the wake of the financial and economic crisis of 2008/09. We present the fiscal...