IMK Titelgrafik für die Startseite des Instituts

:The Macroeconomic Policy Institute (IMK)

The Macroeconomic Policy Institute (IMK) is an independent academic institute within the Hans-Böckler-Foundation, a non-profit organisation fostering co-determination and promoting research and academic study. The Foundation is linked to the German Confederation of Trade Unions (DGB). The IMK was founded in 2005 to strengthen the macroeconomic perspective both in economic research and in the economic policy debate. The IMK analyses business cycle developments and conducts economic policy research, notably on fiscal and monetary policy, labour markets, income distribution and financial markets. The Institute seeks to address the challenges facing macroeconomics and economic policy in the wake of the global financial crisis.

Keyvisual FMM Conference 2023 Inflation Distributional Conflict Transition

8th International FMM Summer School

The summer school aims at providing an introduction to Keynesian macroeconomics and to the problems of European economic policies to interested graduate students (MA and PhD) and junior researchers. It will consist of overview lectures, a panel discussion, student study groups, an SFC lab, and a poster session.

IMK Grafik zu den Veröffentlichungen im Allgemeinen

Current Publications

Tarne, Ruben; Bezemer, Dirk : Housing affordability in a monetary economy: an agent-based model of the Dutch housing market

This paper is motivated by the global housing affordability crisis. Housing shortages in monetary economies are defined by affordability, which is the balance between money (income and borrowing) to access housing and the price (purchase prices and rents) that provides access. This balance is governed by real variables (demography and housing supply) and by monetary and financial variables (interest rates, mortgage debt subsidies, and loan-to-value norms). We study the trade-offs between policies addressing real and financial causes of affordability dynamics.

IMK Working Paper 222 Deckblatt

Vemengo, Matias : Was Keynes a Liberal or a Socialist?

This paper suggests that while Keynes was a pragmatist willing to experiment in economic policy, and fully aware of the need to transform and transcend laissez-faire capitalism, he remained a liberal, in particular because Labourites, and most socialists, remained conservative in their economic policy outlook. Keynes was a revolutionary in economic theory, but a moderate in his politics.

FMM Workingpaper 94 Deckblatt

Jaeger, Carlo; Teitge, Jonas; Thie, Jan-Erik; Trauboth, Antje : The German Car Industry in Times of Decarbonisation

The German car industry in times of decarbonization. The authors present 3 futures: a pink scenario of global expansion of electric cars, a black scenario of a shrinking market for German cars while not reaching climate neutrality by 2050, & a green scenario where shuttles on demand help realise climate goals. Further, a multisectoral approach to analyse economic dynamics is proposed.

IMK Working Paper 221 Deckblatt

Palley, Thomas : The theory of monetary disorder: debt finance, existing assets, and the consequences of prolonged monetized budget deficits and ultra-easy monetary policy

This paper introduces the notion of monetary disorder. The underlying theory rests on a twin circuits view of the macro economy. The idea of monetary disorder has relevance for understanding the experience and consequences of the recent decade-long period of monetized large budget deficits and ultra-easy monetary policy. Current policy rests on Keynesian logic whereby a large fall in aggregate demand warrants robust offsetting monetary and fiscal policy actions.

FMM Working Paper 93 Deckblatt

Palley, Thomas : Broadening the application of hysteresis in economics: institutions, policy lock-in, psychology, identity, and ideas

Keynes' General Theory was a massive step forward relative to classical economics, but it was also a step backward in its denial of the conflictual nature of capitalism. There is need to understand Keynes' technical contributions regarding the workings of monetary economies, but also need to understand the flaws within his thinking and the consequences thereof. Keynes made a fundamental contribution elucidating the mechanism of effective demand, and he also has claim to be the preeminent monetary theorist.

FMM Working Paper 92 Deckblatt

Dullien, Sebastian; Tober, Silke : Inflation differentials between households considerably lower in May 2023

Germany's CPI inflation stood at 6.1% in May 2023 and was thus more than one percentage point lower than in April 2023 (7.2%). Food prices contributed slightly less to inflation, but at 2.1 percentage points still almost seven times as much as usual. The contribution of household energy was nine times higher than in more normal times, albeit with a lower weight in the consumer price index than food. Total energy prices increased by only 2.6% as fuel prices significantly fell over the past 12 months ( 14.2%). Core inflation excluding energy, food, alcohol, and tobacco also declined and stood at 5.0% in May 2023 after 5.5% in April 2023.

IMK Policy Brief 152e Deckblatt

Tober, Silke; Theobald, Thomas : Prudent Recalibration Required: The ECB's Response to the 2022 Price shocks

The ECB was not slow to react to the rising inflation, but rather reacted very strongly as the price shocks escalated and the supply bottlenecks persisted longer than widely expected. The ECB raised rates later and less forcefully than the Federal Reserve because the inflation dynamics in the euro area differ significantly from those in the euro area. The U.S. economy was robust on the eve of the pandemic, the unemployment rate had reached historic lows, and the key policy rate was above 2 %, whereas the ECB's policy rate was below zero, unemployment high and the economy still recovering from previous crises.

IMK Report 181e Deckblatt