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.

25th FMM Conference: Macroeconomics of Socio-Ecological Transition

Social inequalities, climate change and environmental pollution question the sustainability of capitalist modes of pro-duction, consumption and policies. Macroeconomists of both orthodox and heterodox traditions have long focussed on economic growth as the central means to development of the global South, prosperity and solution to distributional conflicts. At our conference, we will discuss what macroeconomists can contribute to this debate and learn from other fields. How does global capital-ism shape the environment? What can macroeconomic policies do to facilitate a just transition towards a sustainable world economy? What are the feedbacks from distributional effects and ecological developments back to the macro economy? How to improve macroeconomic modelling by including socio-ecological dimensions?

25th FMM-Conference 2021
IMK Logo
IMK Grafik zu den Veröffentlichungen im Allgemeinen

Current Publications

IMK Working Paper 211 : The Effects of fiscal policy on households during the COVID-19 pandemic

In response to the economic crisis created by the COVID-19 pandemic, many governments provided financial assistance to households. Using representative consumer surveys conducted during the pandemic in 2020, we examine the effects of this fiscal policy instrument on households in two emerging economies, Vietnam and Thailand. Our paper contributes to the literature by studying consumer sentiment and durable spending responses to government financial support and the underlying transmission channels for these responses. We find that government support improves consumer sentiment and increases the likelihood of durable spending.

IMK Grafik zur Publikationsreihe Working Paper

FMM Working Paper 67 : The post-Keynesian “Crowding-In” Policy Meme: Government-led Semi-Autonomous Demand Growth

A recent literature has explored the role of semi-autonomous demand growth. This paper builds on the literature by incorporating a Lernerian government semi-autonomous demand function and an endogenous supply-side. Our main purpose is threefold. First, we wish to contribute to the case for crowding-in effects, especially in the long-run. Second, we confirm the Keynesian/Kaleckian pedigree of the capital stock adjustment principle. Third, we contrast core post-Keynesian ideas on demand-led supply-side endogeneity with the alternative neo-Marxian neo-Harrodian proposition of an exogenously-given natural growth rate, and find the latter lacking.

FMM publications

FMM Working Paper 66 : Aggregate Demand Externalities, Income Distribution, and Wealth Inequality

We study a two-class model of growth and the distribution of income and wealth at the intersection of contemporary work in classical political economy and the post-Keynesian tradition. The key insight is that aggregate demand is an externality for individual firms: this generates a strategic complementarity in production that results in equilibrium underutilization of the economy’s productive capacity and hysteresis in real GDP per-capita in balanced growth. This equilibrium inefficiency reverberates into both the functional distribution of income and the distribution of wealth: both the wage share and the workers’ wealth share would be higher at full capacity. Consequently, fiscal allocation policy that achieves productive efficiency also attains a higher labor share and a more equitable distribution of wealth.

FMM publications

FMM Working Paper 65 : Do corporate tax cuts boost economic growth?

The empirical literature on the impact of corporate taxes on economic growth reaches ambiguous conclusions: corporate tax cuts increase, reduce, or do not significantly affect growth. We apply meta-regression methods to a novel dataset with 441 estimates from 42 primary studies. There is evidence for publication selectivity in favour of reporting growth-enhancing effects of corporate tax cuts. Correcting for this bias, we cannot reject the hypothesis of a zero effect of corporate taxes on growth. Several factors influence reported estimates, including researcher choices concerning the measurement of growth and corporate taxes, and controlling for other budgetary components.

FMM publications

Article : Leisure and housing consumption after retirement: new evidence on the life-cycle hypothesis

Foreseeable income reductions around retirement should not affect aggregate consumption. However, given higher leisure endowments after retirement, theory also predicts lower consumption of leisure substitutes. To avoid misinterpreting this predicted drop as a puzzle, our novel approach focuses on housing consumption (complementary to leisure in utility) and controls for leisure changes.

IMK Grafik zu extern veröffentlichten Artikel

IMK Working Paper 210 : Do corporate tax cuts boost economic growth?

The empirical literature on the impact of corporate taxes on economic growth reaches ambiguous conclusions: corporate tax cuts increase, reduce, or do not significantly affect growth. We apply meta-regression methods to a novel dataset with 441 estimates from 42 primary studies. There is evidence for publication selectivity in favour of reporting growth-enhancing effects of corporate tax cuts. Correcting for this bias, we cannot reject the hypothesis of a zero effect of corporate taxes on growth. Several factors influence reported estimates, including researcher choices concerning the measurement of growth and corporate taxes, and controlling for other budgetary components.

IMK Grafik zur Publikationsreihe Working Paper

FMM Working Paper 63 : How can green differentiated capital requirements affect climate risks?

Using an ecological macrofinancial model, we explore the potential impact of the `green supporting factor' (GSF) and the `dirty penalising factor' (DPF) on climate-related financial risks. We identify the transmission channels by which these green differentiated capital requirements (GDCRs) can affect credit provision and loan spreads, and we analyse these channels within a dynamic framework in which climate and macrofinancial feedback effects play a key role.

FMM publications

IMK Policy Brief 105 : ECB strategy

The ECB’s strategy of inflation targeting as currently practiced requires only minor adjustments to allow the ECB to best provide price stability and support the EU’s general economic policies. The key to inflation targeting is a distinct and symmetric inflation target that serves as a benchmark for private-sector expectations and a central bank that is held accountable and transparently justifies its policy actions

IMK Grafik zur Publikationsreihe Policy Brief

IMK Working Paper 209 : Germany’s Labour Market in Coronavirus Distress – New Challenges to Safeguarding Employment

Working-time reductions, mainly through short-time work (STW), were the major factor in safeguarding employment in the Coronavirus Crisis. STW was more rapidly extended, more generous, and for the first time a stronger focus was put on securing household income. Low-wage earners are affected more frequently by STW than in the past and suffered relatively greater earnings losses compared to others.

IMK Grafik zur Publikationsreihe Working Paper

IMK Workind Paper 208 : Risk sharing revisited

The euro area crisis has revealed a lack of cross-country risk sharing. Frequently used estimation methods to determine the empirical contribution of the different risk sharing mechanisms have important shortcomings. The ongoing debate about reforming the euro area would benefit from complementary empirical approaches.

IMK Grafik zur Publikationsreihe Working Paper

IMK Working Paper 207 : Dissecting the COVID19 supply shock: Which role did school closures play?

According to our survey among the German labour force, school closures during the first wave of the COVID-19 crisis in the spring of 2020 have led to a relatively small impact on parents’ labour supply of only 0.4 percent of economy-wide working hours in April 2020 and June 2020. School closures are hence more of a long-term economic and social problem than a short-term labour supply shock.

IMK Grafik zur Publikationsreihe Working Paper

IMK Policy Brief 98 : The macroeconomic effects of the EU Recovery and Resilience Facility

Study finds public capital stocks throughout the EU to increase markedly due to RRF. In some hard-hit European countries, the RRF would offset a significant share of GDP lost during the pandemic. As gains in GDP much stronger in (poorer) southern and eastern European countries, RRF to potentially reduce economic divergence. All countries to experience lower public debt ratios over the next years.

IMK Grafik zur Publikationsreihe Policy Brief

IMK Working Paper 206 : Fiscal rules in good times and bad

I estimate fiscal reaction functions to analyze the cyclical behavior of discretionary measures in the euro area and the potential impact of changes in the fiscal framework. The core is to analyze whether fiscal rules have an asymmetric impact on discretionary measures over the cycle. First, results confirm the general perception that overall discretionary fiscal policy in the EMU is marginally procyclical. Procyclicality is, however, characterized by strong fiscal tightening in contractions while reactions in upturns are neutral. Second, fiscal rules marginally increase countercyclical policy responses in upturns, but strongly reinforce destabilizing procyclical polices in downturns. Interestingly, expenditure rules perform comparably better with regard to the stabilization objective than budget or debt rules.

IMK Grafik zur Publikationsreihe Working Paper

Der Beitrag wurde zu Ihrerm Merkzettel hinzugefügt.

Merkzettel öffnen