AICGS

Economics

Reset

After the Election: Germany Will Continue to Obstruct Global Economic Rebalancing

Dr. Sebastian Dullien, Senior Non-resident Fellow and professor at the Hochschule für Technik und Wirtschaft Berlin, argues that Germany has been one of the main causes for global imbalances and has not been very constructive in global economic cooperation. Dr. Dullien writes that the world should continue to expect this sort of behavior from the world’s third-largest economy, no matter who wins the upcoming election, as the likely coalition possibilities will not change the macroeconomic debates.

America’s Opposite Hand: Germany’s Parties Agree on the Necessity of Environmental Protection and a Green New Deal

“The political system pushes the parties toward the middle,” “party homogeneity is
rather weak” … in Germany’s antiquated libraries, students might pick up these
messages from text books about the U.S. political system. We all know that today’s
reality is a different one. Over the last twenty-five years or so, the U.S. electorate has
drifted further and further apart. The election of Ronald Reagan marks the beginning
of the U.S. shift to the right in the 1980s. The two Bush presidents and even Bill
Clinton—“it’s the economy, stupid!”—continued Reagan’s doctrine of the supremacy of
a preferably untamed capitalism. The chimera of “the invisible hand of the market” has
become an imperative of all political action, and arguably hit the “soft issue” of
environmental protection even more than others …

Keynes in Lederhosen: Assessing the German Response to the Financial Crisis

In an essay titled “Keynes in Lederhosen: Assessing the German Response to the Financial Crisis,” Senior Non-Resident Fellow Dr. Stephen Silvia, professor of International Economic Relations at American University, examines the purported differences in economic stimulus policy between Germany and the United States. Dr. Silvia argues that Germany’s response is in line with it’s status as export champion, and that outside analysts should not be so quick to criticize Germany’s actions.

Miracles are Possible

In light of the current economic crisis, Americans sometimes wonder why Germany, the world exporting champion, is not taking more action to spur on its economy. Dr. Tim Stuchtey, Senior Fellow and Director of the Business and Economics Program at AICGS, writes that to understand Germany’s actions (or lack thereof), one must understand the concept of Ordnungspolitik and how it has shaped Germany’s economic policy over the past sixty years. In his essay, Dr. Stuchtey gives an overview of Ordnungspolitik and suggests ways how this concept can help to end the current crisis.

The International Banking Crisis and Institutional Reforms

As the global financial crisis has expanded, there is considerable confusion in Germany about how to cope with the crisis and fall-out in the real economy, writes Prof. Dr. Paul J.J. Welfens, president of the European Institute of International Economic Relations (EIIW) and a former AICGS Fellow. Dr. Welfens proposes five specific ‘institutional innovations’ that would help in ending the chaos and inefficiencies in the banking systems, and argues for the introduction of a new tax regime designed to encourage bankers to have a long term time horizon in decision-making.

Global Capital Flows

The global credit crunch has caused some to wonder whether or not the U.S. will be able to fulfill its account obligations to the rest of the world. However, the U.S. continues to have positive investment income. DAAD/AICGS Fellow Ute Volz discusses how this is possible and looks at the international investment positions (IIP) of the U.S. and Germany, focusing on the apparent ability of the United States to generate income out of a debtor position and why Germany is currently unable to do better with its IIP strategies.

Overcoming the Lethargy: Climate Change, Energy Security, and the Case for a Third Industrial Revolution

Climate change is one of the most important challenges that the world faces today. In addition to the war in Iraq, climate policy was also one of the primary causes …

Innovation in the United States and Germany: The Future

As mature, post-industrial economies, the United States and Germany confront a promising, if uncertain, future in the realm of innovation. How they approach that future—what they choose to do and …

Innovation in the United States and Germany: Case Studies

As two pillars of the global economy, the status and future of applied innovation in the U.S.-German partnership constitutes a long term challenge to decision-makers on both sides of the Atlantic, albeit for slightly different, if convergent, reasons…

Innovation in the United States and Germany

As economic ties between the United States and Germany have grown steadily deeper and more intertwined, economic performance in one country increasingly affects the transatlantic partnership as a whole… Download …