In this paper we aim to shed light on the global trend in rising corporate saving over the last three decades and to discuss the effects that the Covid-19 crisis might have on companies' saving behaviour. To do so, we analyse the transition of the corporate sector from traditionally being a net...

In this paper we aim to shed light on the global trend in rising corporate saving over the last three decades and to discuss the effects that the Covid-19 crisis might have on companies' saving behaviour. To do so, we analyse the transition of the corporate sector from traditionally being a net...

Given the global trend in corporate saving over the last decades, the COVID-19 crisis raises doubts about the persistence of companies’ saving behaviour due to the losses which have occurred in many companies caused by the isolation of households and by lockdowns. Before the pandemic,...

Pessimism related to the outbreak of the Coronavirus Disease 2019 and its development in 2020 determines the experts' predictions for the second and third quarter of 2020. The pessimistic outlook can be inferred from the downward revisions of the experts' forecasts. More downward revisions than...

Pessimism related to the outbreak of the Coronavirus Disease 2019 and its development in 2020 determines the experts’ predictions for the second and third quarter of 2020. The pessimistic outlook can be inferred from the downward revisions of the experts’ forecasts. More downward revisions...

The rapid recovery of demand combined with supply constraints has led to rising prices during the past months. This is evident in oil and gas markets, but also in international trade, which has been thrown out of step by bottlenecks at Asian ports. This situation creates a trade-off for the...

The European Central Bank (ECB) as well as the Federal Reserve Bank (Fed) are currently challenged by inflation below their inflation targets. While the Eurozone recovery is still anemic, the US economy is growing and the labor market improved, such that the Fed now fulfills one target of its...

While the ECB still struggles with an impaired bank lending channel of monetary transmission, the Fed successfully fought the labor market slack that was caused by the great recession of 2008. Due to the improved labor market, the Fed can now start its gradual interest rate lift-off. The ECB...

A new theory of interest rates, the Neo-Fisherian theory, predicts a low inflation rate due to a central bank's low interest rate. After several years of near-zero interest rate policies and low and even negative infl ation rates in the eurozone and in the US, this theory gained momentum in...

The Corona crisis has clearly become an economic challenge for Europe. The spread of the virus represents both a negative supply shock and a negative demand shock across the economy at large. Securing the liquidity of companies is of top priority. Employment and household income can be...