Heiner Flassbeck

Javier Milei – lost in libertarianism

By Heiner Flassbeck

16. January 2025 I Countries and Regions, Economic Policy, Economic Theory, Globalisation and Development

The Financial Times reports in an interesting article on the Argentine currency strategy. Apparently, President Javier Milei has decided to focus on the so-called anchor approach in the fight against inflation. An anchor approach means that you try to manage your own currency against a stable currency such as the US dollar in such a way that the depreciation of your own currency is significantly lower than the inflation differential with the anchor country. …

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Germans’ inflation phobia remains unbroken, the costs are enormous

By Heiner Flassbeck

11. January 2025 I Economic Policy, Economic Theory, Europe, Forecasts

A few days ago, the Federal Statistical Office reported that the average inflation rate in Germany in 2024 was only 2.2 per cent. The harmonised rate used by the ECB was 2.5 per cent. According to an ECB estimate from December 2024, …

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Restless and senseless – the complexity of the modern world is overwhelming politics

By Heiner Flassbeck

29. December 2024 I Ecology and Growth, Economic Policy, Economic Theory, Europe

What do you do when problems get too much for you? You bury your head in the sand or you take refuge in hectic activity that you sell as the solution to all problems. Our politicians almost always choose the second option and they regularly fail miserably. …

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The Draghi Fallacy: Improving European Competitiveness is not the Answer. If You Want More Productivity, You Need a Macroeconomic Approach.

By Heiner Flassbeck

24. November 2024 I Countries and Regions, Economic Policy, Economic Theory, Europe, Financial Markets

Isn’t it amazing that almost at the same time as the future president of the United States is sending blatant threats across the Atlantic regarding Europe’s current account surpluses, the European Commission and the most important national governments in Europe have hardly any other topic on their agenda than improving international competitiveness. …

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