Economic Freedom

Can prevent the European stability mechanism as the future debt crises in Greece and Portugal? Clearly not, because private investors are still benefiting from the high interest rates of non-performing government debt – a fair share of the credit risks they are not. How should a better crisis mechanism look that offers the affected countries, the private creditors and the guarantee countries in the euro zone has an incentive to overcome the debt crisis, and is likely to save the monetary union from disintegration?. Readmore…

The energy sector in Germany is characterized by diverse, sometimes contradictory state interventions identified. Almost all fuels are also subsidized. The tragic events in Japan have fueled the energy policy debate in Germany. The federal government should understand the energy revolution as an opportunity to reduce the concert of the state intervention to a more effective and cost-effective measure and competition within the meaning of the consumer to strengthen further. Readmore…

After the just-released forecast of the working group will achieve the estimated tax revenues of federal, state and local highs in the coming years. There is talk of a multi-volume amounting to € 135.3 billion by 2014. Faced with a national debt of least 83.2% of gross domestic product should consist agreement about the fact that these revenues are used primarily for debt reduction. Readmore…

Our financial leaders have invented a new buzzword: “soft debt restructuring.” This refers to a debt moratorium. Greece next year could extend the term of its maturing bonds on one side. Because otherwise, would his creditors – especially the banks – from the funds of the EU “bailout” paid at par, although these bonds are currently trading at a fraction of their face value. Readmore…

Since June 2009 has been enshrined in the Constitution of the Federal Republic of Germany, a new rule to limit new borrowing by the federal and state governments. This – just as the “debt brake” called – usually to ensure that finance in Germany with the usual bad habit for five decades, a significant portion of government spending through deficits, finally closing is done. Readmore…

Rewards and punishments represent guiding behavior incentives that make the action more probable or less probable. Therefore, psychologists call this method of learning, a learning of consequences. Only a high penalty rate is having an effect. Is apart of the punishment, it acts indirectly as a reward for the unwanted behavior. Readmore…

After over 30 years of membership I joined a few years ago from the SPD. Joined I was originally, because the former CDU sought to reinterpret a mere change of government as a kind of coup. I felt as a sign that the Christian Democrats still do not play by the rules of law had sufficiently internalized. Readmore…

Appeared recently in the working paper series of the Bonn Institute for the Study of work a paper by James Heckman, which is very worth reading. It's about the late effects of racial discrimination in the U.S., which still seem to be relevant, even decades after the successes of the civil rights movement. Readmore…

There is an insatiable human desire: resale value. But unfortunately this is an impossible request. For as long as man is, there is no good, whose value can be stable: Human action implies a continuous change of preferences and thus a change of values ​​that people attach to scarce goods. This insight is especially natural and good for the money. Readmore…