Berlin The Bonn economist Moritz Schularick is the new president of the renowned Kiel Institute for the World Economy (IfW). This Thursday he took over the management of the research site in the capital of Schleswig-Holstein. At the same time, Schularick has taken on a professorship for economics at the Christian-Albrechts-University in Kiel.
“I agreed because my vision for the IfW was shared and could be implemented, including the necessary financial resources,” Schularick told Handelsblatt. The 47-year-old is leaving the University of Bonn after eleven years. “It ended up being an offer I couldn’t say no to.”
With Schularick’s appointment, a one-and-a-half-year stalemate comes to an end at the IfW, which began with the departure of ex-president Gabriel Felbermayr. The complex responsibility structures between federal, state and university had meant that Schularick’s inauguration lasted until now.
The Handelsblatt had already reported in May 2022 that the scientist was at the top of the Kielers’ wish list. In the meantime, the research directors Holger Görg and Stefan Kooths had managed the house as interim presidents – ultimately for much longer than originally planned.
The IfW is one of the seven largest economic institutes in Germany. In addition to the people from Kiel, the Leibniz Institute for Financial Market Research (SAFE) was also looking for a new top economist for a long time. The Frankfurt Institute also wanted Schularick. But he canceled there in spring 2022. The offer to stay from the University of Bonn had convinced him. Schularick has been teaching and researching there at the university and at the Cluster of Excellence Econtribute since 2012.
The institute was founded in February 1914 as the Royal Institute for Maritime Transport and World Economy at the Christian-Albrechts-University in Kiel.
(Photo: IfW)
This time, the significantly larger Institute for the World Economy defeated the Rhineland university in the battle for Schularick. When Felbermayr became president in Kiel four years ago, Schularick’s name had already been on the wish list. This time he had found himself third first. But the Frankfurt economist Nicola Fuchs-Schündeln and Markus Brunnermeier, who teaches at the US elite university Princeton, had canceled.
IfW could gain more international visibility with Moritz Schularick
With Schularick at the helm, the venerable IfW will get a fresh coat of paint. The macroeconomist makes no secret of the fact that he dislikes German economics and political advice. The German scene is internationally uncoupled. Schularick studied in Paris and did research in Cambridge, Harvard and New York.
The economist has far-reaching plans. He wants to establish a significant “research and consulting presence” for the institute in Berlin. “There is a big gap in the intellectual infrastructure in the capital in the field of geoeconomics and international macroeconomics,” says Schularick.
>> Read here: “Time of latent financial crises” – Moritz Schularick in the Handelsblatt interview
In the future, he wants to more than double the number of professors at the institute. At the same time, Schularick wants to increase visibility through cooperation with international partners. “There was full support for this plan from the financier.”
Economist Schularick: “We live in a time of latent financial crises”
Schularick is considered the man of the hour in the German economy. His assessments are in demand, not only in science, but also in politics. His innovative methods are shaking up the economic landscape. And Schularick brushes across, says clearly what he thinks.
The economist taught and researched there from 2012.
(Photo: ECONtribute)
The special thing about Schularick: He also sees himself as a historian. He is known for his insights into how conclusions about future financial crises can be drawn from the past. He observed a threat to financial stability, especially after periods of strong growth.
For example, Schularick is not yet overcoming the recent earthquake in the banking landscape. “We are rolling with a huge mountain of debt, most of which has to be refinanced in the short term,” he says. As soon as there is a small disruption, the whole system shakes and the central banks have to work hard to keep it together. “We live in a time of latent financial crises.”
Central head in the gas embargo dispute
As far-reaching as his reform plans for the Kiel Institute are, they are just as radical for the financial sector. “One option could be that we all just have accounts with the central bank in the future,” Schularick suggested.
Schularick’s harsh verdict on the state of the German economy is also a reaction to the debate about an energy embargo against Russia. Shortly after the start of the war, the economist and eight other researchers calculated the consequences of a stop in the supply of gas, coal and oil for Germany. The result: an immediate embargo is “manageable”.
>> Read here: Debate on tax policy – “Then the government failed in its job”
Since then, Schularick has sharply criticized the fact that the federal government refuses to do so. “He has a very brash attitude,” says someone close to the government. Another government official said he wasn’t sure Kiel would have happened if he had fueled the embargo debate before the negotiations.
However, the chief economist at the Federal Ministry of Economics, Elga Bartsch, was now pleased. “I value Mr. Schularick as one of the most renowned German scientists in the field of international financial market research,” said Bartsch. Above all, Schularick’s excellent scientific reputation has brought him the post. In 2022, Schularick won the Leibniz Prize, which is endowed with 2.5 million euros. In Kiel, his influence on the German economy will continue to grow.
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This article was published on March 2nd, 2023. The article has been checked again and updated with slight adjustments.