Following an unprecedented contraction in GDP, the German economy returns to expansion. Growth will be modest in 2010, however, as the forces of the recovery are not yet stable. This is the key result of the Autumn outlook of the German Institute for Economic Research (DIW). DIW expects...

China has taken first steps hinting at an internationalization of the Renminbi: The country has begun cautious action for opening up its capital account and allowed currency fluctuations within a certain limit between 2005 and 2008. Promoting Hong Kong as a test center for the Renminbi's...

Following the enormous growth in household incomes in the former East Germany during the first half of the 1990s (which was based, in particular, on meteoric wage rises, accompanying pension adjustments, and the increase in receipt of social welfare benefits), east German incomes subsequently...

Even though the share of workers retiring prematurely is growing, the average age of the labor force is rising because the younger age groups are contracting and the length of time they spend in education is increasing. And yet the German higher education system is relatively unproductive. While...

The upcoming World Cup has raised high expectations in Germany, not just for the national team, but for the economy as well. As the cyclical upswing has mainly been supported by exports so far, hopes have been growing recently that this sporting event will have a positive and stimulating effect...

Net real wages in Germany have hardly risen since the beginning of the 1990s. Between 2004 and 2008 they even declined. This is a unique development in Germany-never before has a period of rather strong economic growth been accompanied by a decline in net real wages over a period of several...

Great expectations were connected with the so-called Hartz IV reform which came into effect five years ago. In fact the number of unemployed recipients of Hartz IV benefits drastically went down during the last economic rebound. In earlier economic cycles the number of unemployed recipients of...

China's growing trade surplus with the USA has triggered a discussion whether the Yuan is fundamentally undervalued in relation to the US Dollar. So far, China has resisted the demand to drastically revalue its currency. This creates tension as the US economy is only slowly recovering and...