Faculty Research Talks—A New Seminar Series from WHU

Where do things stand with Germany’s economy these days? And where is it headed? These and other pertinent political and scientific topics were discussed at length at the premiere Faculty Research Talk, a series of seminars offered through WHU – Otto Beisheim School of Management. This initial event, held mid-March, is one of many designed to promote academic exchange and teamwork within the school’s community. To kick things off, the school invited Professor Ulrike Malmendier, a highly respected researcher at the University of California, Berkeley, and member of the German Council of Economic Experts. Her illuminating works cover everything from corporate financing to behavioral economics.

With her presentation “Investments, Infrastructure, and Innovation (and Lack Thereof),” Professor Malmendier gave attendees insights into the current condition of the German economy, noting its continued stagnation. “Globally, economies are growing again,” she said, “but the German economy is stagnating.”

As she sees things, the nation’s economy is being held back by both economic and structural issues. Economic forecasts are not particularly encouraging: Germany’s (real) GDP is likely to have shrunk around 0.1% in 2024 and in 2025 is slated to increase by only 0.4%. One of the major problems that has to be addressed , according to Professor Malmendier, is that “Germany is no longer attractive to foreign workers.” With future-focused public expenditures going unprioritized for years, she suggests that the government make a concerted effort to provide impetus for these trends to change. She also advocates the creation of institutional provisions with a high binding effect, in particular, an infrastructure for transport and minimum quotas for education and defense spending. Germany is also lagging behind when it comes to the digitalization of its financial system and is failing to explore its potential to become more innovative and efficient—despite the existence of new approaches in the start-up scene that have already received praise in the United States. But especially in the case of follow-up financing, the momentum is then lacking.

Those in attendance at the seminar, including members of faculty and doctoral candidates, took advantage of this opportunity to speak with the visiting expert about a variety of topics, including the nation’s balanced budget amendment (Schuldenbremse).

Faculty Research Talks are to take place once or twice per semester, allowing for an exchange between faculty, doctoral candidates and specialists on a variety of topics relevant to the fields of study pursued at WHU. The series of seminars is coordinated by Professor Michael Massmann (Chair of Econometrics and Statistics).