DIW Economic Bulletin

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Despite the Strong Labour Market, the Share of the Middle Income Group Has Not Risen in Germany: Seven Questions to Markus M. Grabka

Shrinking Share of Middle-Income Group in Germany and the US

According to calculations based on the Socio-Economic Panel (SOEP) study, the proportion of middle-income group in Germany fell by more than five percentage points from 1991 to 2013, taking it to 61 percent. Germany is not the only country to have experienced such a downturn, however. Analyses of the situation in the US indicate a similar decline. To the middle-income group belong individuals in households ...

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Value of Inheritances Varies Considerably from Country to Country: Eight Questions to Christian Westermeier

Inheritances in Europe: High Earners Reap the Most Benefits

By 2010, 27 to 40 percent of all households in euro countries had inherited or received gifts. This only includes transfers from outside their own household. The present value of these transfers averaged between 85,000 and 274,000 euros, depending on the relevant country. The sum of all inheritances and gifts in western Germany corresponds to one-third of the current net worth of households— and is ...

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EU Competition Policy Enforcement Supports Investment in the Energy Sectors

Energy sectors—primarily power generation and gas production, but also energy transmission and distribution—require significant capital investment in infrastructure. Market structures as well as the degree of competition and regulation are key factors that determine firms’ incentive to invest. Yet the empirical research on the link between these factors and private investment is still quite scarce, ...

In an International Comparison, Too Little Is Being Invested in German Industry: Six Questions to Marcel Fratzscher

Weak Corporate Investment Requires Immediate Action

Although the federal government has been taking steps to strengthen investment in Germany, it remains considerably low. This includes private investment, on which thepresent study focuses. German companies are barely investing more than they did before the crisis, but this is not the case elsewhere: in the US, for example, the level of investment is nearly 14 percent higher than it was in 2007. One ...

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Countries with Large Current Account Deficits Could Find Themselves under Pressure: Eight Questions to Christoph Große Steffen

Interest Rate Lift-Off in the US: Moderate Impact to Date but Emerging Markets Should Brace Themselves

For the first time in almost a decade, the US Federal Reserve raised interest rates at the end of 2015 - an initial step toward normalizing monetary policy which has been very expansive since the onset of the financial crisis. Ahead of the move, it was feared that the interest rate reversal might have a considerable impact on emerging markets because the hike would lead to more capital flows being ...

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National Central Banks Should Become More Transparent: Seven Questions to Philipp König

The Eurosystem's Agreement on Net Financial Assets (ANFA): Covert Monetary Financing or Legitimate Portfolio Management?

As well as implementing the common monetary policy, the national central banks (NCBs) which, together with the European Central Bank (ECB) form the Eurosystem, are also responsible for performing a range of national tasks. Among other things, these include the management of their financial assets portfolios. To ensure that this function does not interfere with the implementation of the single monetary ...

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Private Consumption Will Remain a Powerful Growth Driver: Eight Questions to Simon Junker

German Economy Back on Track, Despite Weak Global Economy

The global economy is stalling. Global production increased by only 3.3 percent last year—the lowest growth rate since the financial crisis—and is expected to rise by only 3.3 percent in 2016 as well, which is lower than originally predicted. The reason for the sluggish growth lies primarily in the changes taking place in the emerging countries: the Chinese economy continues to lose momentum, and low ...

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