Economic Consequences of Europe’s New Geopolitical Situation, with Moritz Schularick

02/21/25 • 37 min

Join us on as we delve into the economic consequences of Europe's evolving geopolitical landscape with our guest Moritz Schularick, President of the Kiel Institute for the World Economy. Together, we tackle the pressing issues arising from an imperialistic Russia, uncertain US commitments, and China's strategic maneuvers. Tune in to understand the shifts in global order and what these could mean for Europe's economic and political strategies.

Previous Episode

Is Germany’s Industrial Slowdown About to Spiral?

Germany's industrial powerhouse has long been the backbone of Europe’s economy. But after years of steady growth, manufacturing activity has been on a downward trajectory since 2018. Could this decline suddenly accelerate due to "cluster effects" and local economies of scale unraveling?

In this episode, we dive into the forces shaping Germany’s industrial slowdown and explore whether policy interventions could halt or even reverse the trend. We ask how insights from economic theory help us make sense of these cascading risks.

Join us as we discuss these pressing questions, drawing also on the academic work by David Baqaee, whose paper "Cascading Failures in Production Networks" (Econometrica, 2018) sheds light on how production networks can amplify economic shocks.