Over the last twenty five years, current account imbalances have been both rising over the trend and have become more volatile over the cycle. In boom times, imbalances expanded while in times of a cyclical downturn they shrank. A rising trend has been mainly explained with two developments:...

[Introduction ...] In this paper, we seek to identify innovative ways to limit inequality in households’ disposable incomes and living standards while keeping welfare systems fiscally sustainable. We focus on the welfare systems of EU countries in comparison, to better understand their key...

We take stock of the Schengen Agreement that celebrated its 30th birthday on June 14th, 2015. We argue that the abolition of internal border controls in most European Union member states is rightly considered a blessing to EU citizens. Internally, the Agreement facilitates social and economic...

[Woran Griechenland krankt] Griechenland leidet im Kern vor allem unter institutioneller Dysfunktionalität und einer schweren Deformation der Produktionsstrukturen. Diese sind massiv zugunsten eines überdimensionalen Konsumsektors verzerrt. Letzterer war nur solange lebensfähig, wie dem Land...

Against the background of the continuously weaker economic growth in China in the past few years, the Chinese government is convinced that the Chinese economy needs to adapt itself to getting used to "the New Normal". Under "the New Normal" the Chinese economy will grow at lower rates of about...

The authors reveal that on the one hand China alleviates inward FDI with a clear focus on promoting "quality" FDI with potential positive impacts also on local firms without direct investment relationships with multinational enterprises. On the other hand China lowers Most Favored Nation (MFN)...

The author shows that the US as the world's largest investor abroad so far shuns the most dynamic host region East Asia including China and instead continues to focus on investment in Europe. In contrast, Germany follows a different path. Similar to trade, German companies have been very active...