In the first half of 2020, the global coronavirus pandemic led to the most severe economic slump in Germany in decades. Governments and central banks around the world have taken extensive measures to stabilise the economy as well as labour and financial markets.

Tax reform designed to improve the conditions for macroeconomic growth without weighing on government budgets has been the topic of recent debate in Europe. One proposal on the table suggests reducing taxes on wages whilst at the same time raising those on land and property. A new study uses a modern DSGE model to examine how, within this model framework, such a shift would impact on the aggregate economy and to what extent property owners and tenants would be affected.

The July 2016 edition of the Monthly Report describes how the Bank Lending Survey has evolved since the onset of the financial crisis and analyses approaches to containing sovereign debt crises in the euro area. It also discusses two new minimum prudential standards – total loss-absorbing capacity (TLAC) and the minimum requirement for own funds and eligible liabilities (MREL) – in connection with the resolution and restructuring of banks.