SAFE Finance Blog

Many borrowers focus on the initial monthly mortgage payment rather than minimize the life-time costs of the loan, even when they could afford to do otherwise. As a result, new financial products with delayed debt repayment can substantially increase households’ willingness to borrow

Demographic developments and low interest rates have consequences for the German pensions system. In order to secure the standard of living in old age, financially viable and feasible measures are needed

Large-scale household survey shows a constant picture with slight improvements after six months

Large-scale household survey casts doubt on the effect of monetary gifts

To protect private investors some European countries ban sales commissions. A recent study examines the real effects of not paying commissions on clients

Baptiste Massenot: Central banks decide on aid programs worth billions to mitigate the economic impact of the coronavirus pandemic. But how equitable are these measures?

Christian Schlag: The coronavirus triggered a worldwide sell-off on the stock markets. Banning short sales to stop falling prices, however, is too short-sighted

Germany has the second-lowest share of homeowners of all OECD countries. This is driven by housing policies that produce incentives to rent. New studies show that alternative policies could increase the homeownership rate and reduce wealth inequality

Alexander Ludwig: The discussion about lower delayed retirement credits in the German public pension system misses the point. Instead, it would be more important to increase both, delayed retirement credits and early retirement penalties, and to link them to the longer life expectancy of the working population

Alexander Ludwig: Hubertus Heil's proposal for a tax-financed basic pension would solve some problems. Nevertheless, the concept would be expensive and could significantly increase disincentives to work

Alfons Weichenrieder: Technical studies attest only minor advantages in terms of carbon footprint to the use of electric cars compared to vehicles with conventional power engines. However, important economic conditions are overlooked

Andreas Hackethal: Better than a pension guarantee would be to finally allow citizens more insights