Brexit effect would be another price driver
2018-08-31
Brexit effect would be another price driver Similar to the 5,000 additional office workers, we assume that the Brexit effect would create the need for an additional 5,000 homes on the residential property market. Owing to low price elasticity and the difficulties described in expanding the supply of housing, thereRead More →
Individuals are taxed on their worldwide income
2018-08-29
Individuals are taxed on their worldwide income Territoriality and residence All resident individuals (natural persons) are taxed on their worldwide income. Domestic law deems a person to be resident if he has a home or his habitual abode in Germany. Generally, individuals are deemed to have their habitual abode inRead More →
Led by lower energy prices, the German inflation rate looks set to decline somewhat in 2018, but ought to rise again in 2019
2018-08-28
Led by lower energy prices, the German inflation rate looks set to decline somewhat in 2018, but ought to rise again in 2019 From our point of view, several strong arguments suggest that German inflation is likely to pick up moderately in the medium term. On the one hand, globalRead More →
Demographic developments will not dampen inflation
2018-08-28
Demographic developments will not dampen inflation Demographic developments will not dampen inflation any more Beyond global economic developments, an important structural trend might reverse and cause inflation to accelerate again. According to a BIS working paper, the global potential workforce has increased by 120% to roughly 1.9 billion people betweenRead More →
Fed raising rates
2018-08-28
Fed raising rates Even if, as is likely, the Fed continues its current path of raising rates and letting its bond portfolio gradually run off in 2018, the meeting minutes could raise more questions about policy over the intermediate term. Marvin Goodfriend,for example, is reportedly not a proponent of theRead More →
Booming metropolitan areas despite higher interest rates
2018-08-26
Booming metropolitan areas despite higher interest rates It is expected that, during the coming years, house prices will continue to rise in all metropolitan areas covered by this report. The uptrend will likely not come to an end until 1. Supply is massively increased and vacancies rise. Such an outcomeRead More →
Core inflation rate
2018-08-25
Core inflation rate In light of the core inflation rate which has been fluctuating around the 1% mark – significantly below the ECB’s inflation target of close to but under 2% – low growth momentum and persistent structural problems in the eurozone, the ECB is likely to maintain its expansiveRead More →
Weathered the rise of the EM
2018-08-24
Weathered the rise of the EM In addition, German industry has long been a global leader in many disciplines. Over the past 25 years, it has also weathered the rise of the emerging economies and largely retained its share of global trade – something other developed countries have not managedRead More →
Feds monetary policy
2018-08-24
Feds monetary policy It is fair to say few have had much of a clue how the extraordinary monetary policy measures during and after the crisis would play out. Now as the Fed pushes on its unwinding strategy there is also no real template for how it will play outRead More →