Germany

Governments across Europe are planning for a new electric age. Driven by car manufacturers and energy companies, European politicians are vying to lead the development of electric cars.

Australians worried about their productivity performance in international rankings may relax a little. There is not much in the German experience that they should wish to copy.

After 13 years of Mixed Member Proportional (MMP) representation, Prime Minister John Key has said it is time to ‘kick the tyres’ and see how much support the system enjoys. New Zealand will hold a referendum on the electoral system coinciding with the next election, which may well be a close contest. With this referendum looming, it is both desirable and necessary to revisit New Zealand’s electoral system, its peculiarities, and its history. Beyond that, this is also the time to consider alternatives to MMP.

Angela Merkel’s confirmation as Chancellor could at first look like a sign of political continuity. But the Christian Democrats’ switch of coalition partner from the Social to the Free Democrats is more than an exchange of adjectives. For Merkel and her party, this is the now-or-never chance to get serious with economic modernisation.

The public is thirsting for political leaders who dare to speak their minds. If only Australian politics would produce someone like the young German economics minister, our political debates would become infinitely more interesting. And Kevin Rudd would finally have a real reason to be afraid of ideologues.

Neoliberalism is one of the most commonly used words in political debates. Despite this, the origins of neoliberalism are hardly known. Nor does there appear to be a generally accepted definition of the term. The original inventors of the word ‘neoliberalism’ had something completely different in mind. Their philosophy was a reasiong to the Great Depression of the 1930s. As such it was meant to show a ‘Third way’ between capitalism and socialism. Today’s critics of neoliberalism have more in common with neoliberalism than they may think.

In Germany, but not only there, the economic ideas of the 1970s are celebrating a revival. But why would anyone want to retry the old recipes for more regulation and fiscal stimulus when they so spectacularly failed back then? It may well turn out that watching Life on Mars is a better way to indulge in 1970s nostalgia.

For policymakers, the lesson is clear. If they are concerned about housing boom and bust cycles, they have to quash the expectation that house prices will continue to rise. To do that, they need to examine property markets with long records of house price stability, and learn from them how to ensure that when more housing is needed, more can be built.