The concept of the "Political Business Cycle" (PBC) states that elected politicians sometimes manipulate fiscal or monetary policy with the intention of artificially influencing economic conditions around elections. They do this with the aim of improving their chances of re-election. Such interventions can lead to artificially induced fluctuations in economic activity. Before the parliamentary elections in Spain in 2023, it was observed that a conspicuous amount of public investment was made - possibly with the aim of stimulating the economy in time. However, this was not the case before the 2011 elections. The podcast takes an in-depth look at the concept of PBC and analyses the connection with Spain's economic situation.

Authors: Clemens A. Brezinka, Tolias Alexandros, Anna S. Schaffgotsch;

Language: English

Germany and France are regarded as two of Europe's biggest economic drivers. However, both countries faced considerable economic difficulties as a result of the global economic and financial crisis in 2007, 2008 and 2009. In the years that followed, the economic situation calmed down again - which gave the incumbent heads of government in both countries some confidence for the upcoming elections shortly afterwards. However, while the conservative French President Nicolas Sarkozy lost the 2012 election to his socialist challenger François Hollande, in Germany the equally conservative Chancellor Angela Merkel was able to retain a large lead a year later and remained in office. According to the theory of "economic voting", people in Germany therefore voted for the incumbent in view of the economic recovery. The podcast analyses why these differences between France and Germany came about.

Authors: Barbara Czaak, Lara Liebhart, Florian Praschak, Markus Wolkerstorfer

Language: German

Microsoft and Amazon share some similarities. Both are among the largest and most valuable companies in the world, both are in the (high) technology sector, and both have their respective headquarters in the U.S. However, they differ significantly in one respect: Microsoft announced in 2022 that it would support the formation of trade unions among its employees. Amazon, on the other hand, is strongly opposed to unions is said to have intimidated its employees to prevent the formation of unions. Why do the two companies act so differently on this point? Why do some companies support unions and others not at all? The podcast looks at possible explanations for these questions.

Authors: Jakob Hüttner, Jana Mitterbauer, Emily Patek, Nico Schuh;

Language: German

Both Germany and Austria have compulsory statutory health insurance. But the difference lies in the details: In Austria, everyone is covered by statutory health insurance - in Germany, however, there is freedom of choice between statutory and private health insurance in certain cases. In Austria, for example, all employees are automatically assigned to the statutory health insurance provider responsible for the respective professional sector, whereas in Gemany, employees can also choose between different statutory providers. As a result, there are still over 90 statutory health insurance providers in Germany in addition to the private ones, whereas there are only three large statutory providers in Austria. The podcast takes a closer look at how these different developments came about, the considerations behind them and what this actually means for those affected.

Authors: Christina Gritsch, Alexandra F. Ranner, Elias Wolf

Language: German

When the social security system that has become famous as "Obamacare" was introduced under President Barack Obama in the U.S., it was clear that the Democratic Party and its electorate supported the president. The Republicans, who were in opposition at the time, became fierce opponents of "Obamacare" and still oppose the expansion of the programme. According to polls, however, many voters of the Republican Party are quite positive about "Obamacare". Why do the views of the party and its voters diverge so much? The podcast looks at various political backgrounds and attempts to explain this difference.

Authors: Philipp N. Henßler, Jakob Korosec, Iris Reichspfarrer;

Language: German

Data from the OECD of 2020 show that women's pensions are still on average about 27% lower than those of men. Especially the comparison of two highly developed neighbouring countries shows particularly large differences here. While the gap between the average pensions of women and men in Germany is particularly large at well over 40%, it is comparatively small in neighbouring Denmark at less than 10%. How can such differences arise in two comparable OECD countries? The podcast analyses the systems of both countries to find possible answers to this question.

Authors: Matthias Hofinger, Mira Klien, Veronika Kren, Felix Wurzinger;

Language: German

Austria's first Minister for Women's Affairs, Johanna Dohnal, once said "that men should also be given the chance to have a family and a family life". In Austria, the possibility of paternity leave was created in 1990. Finland also invests a lot in equal rights for fathers and mothers in raising their children. Nevertheless, far fewer men take up the offer of paternity leave in Austria than in Finland. Why do the two countries differ so much in this respect? The podcast explains different regulations in parental leave and explores possible explanations for this disparity.

Authors: Florian Heimhilcher, Pierce R. C. Johnston, Jana Pörnbacher, Raphaela Wenger;

Language: German

How can fathers be encouraged to take parental leave as well and thus contribute to more equality in the distribution of childcare work? Different countries have different approaches to this issue. Most of them have different regulations regarding the receipt of state financial support for childcare. The length of the payment entitlement and the amount of the benefit can be decisive factors for the involvement of fathers in childcare. Austria and Finland show striking differences here. The podcast looks at how exactly the parental leave regulations differ in the two countries, what effects this actually has and what other factors need to be taken into account.

Authors: Tobias Hinterhofer, Felix Plattner, Victoria Staudinger

Language: German

In 1997, a financial market crisis spread from Thailand, affecting several Southeast Asian countries and leading to severe economic turbulence in the countries affected. The turmoil, which was later referred to as the Asian crisis, primarily affected the so-called Asian tiger economies of South Korea, the Republic of China (Taiwan), Hong Kong and Singapore, which were catching up with the western industrialised countries due to their economic growth. Vietnam is located in the immediate vicinity of Thailand, the starting point of the Asian crisis. The Vietnamese economy survived the crisis without any major problems. The podcast is therefore dedicated to the question of where the key differences lie in the economic structures of Thailand and Vietnam, which led to the two countries being affected so differently by the crisis.

Authors: Maria Doppler, Yaroslav Mudrak, Justus D. Rahmel, Theo Rieg

Language: English

Australia and Japan have a comparable highly concentrated banking system. In both countries, the three or four largest institutions dominate a good 80% of the market. However, high systemic concentration also increases the potential vulnerability in the event of a crisis - which has occurred in both countries. As a result, the governments of the two countries reacted in completely different ways and took diametrically opposed measures regarding the control and regulation of the financial sector. Has one of the two systems proved more effective than the other? The podcast explores the motivations that led to these different decisions and how the banking systems of both countries have evolved.

Authors: Sophia Kaiser, Lisa Schmid;

Language: English

Questions about social justice and the appropriate remuneration of labour are sometimes the subject of very controversial discussions. These discussions often relate to statutory minimum wages, which are regulated differently in each country. In France, for example, the statutory minimum wage is USD 12.1 per hour, while in Spain it is only USD 8.6 per hour. That's a difference of 41% between two neighbouring countries in the European Union. The podcast is therefore dedicated to the question of which factors influence the political decision to set a statutory minimum wage.

Authors: Hannah Hössinger, Lukasz Kacper Kopec, Markus Wolkerstorfer

Language: German

In addition to the often indescribable human suffering, major natural disasters are often a severe blow to the economy of the affected country. From investments that cannot be made, to the costs of reconstruction, to a lack of income due to a decline in tourism, for example. Earthquakes are a particularly drastic example of this. In spring 2011, an earthquake of historic proportions hit Japan, triggering a tsunami and subsequently the nuclear disaster at Fukushima. Twelve years later, in spring 2023, the earth trembled in the border region between Turkey and Syria, killing over 50,000 people. However, the economic policy responses of Japan and Turkey could not have been more different in light of the disasters. While the Turkish government took extensive measures to stabilise the national stock markets, Japan hardly intervened in this respect. The podcast discusses the background to these approaches and looks in particular at the differences in the economic structures of the two countries.

Authors: Niklas Böhler, Elma Fejzic, Paul Panhauser

Language: English

Both Switzerland and Bulgaria are small countries in Europe. Moreover, both countries have well-developed financial systems and have not adopted the euro as their currency. The respective national currencies, the Swiss franc and the Bulgarian lev, were fixed to the euro for a long time. Switzerland, however, has abandoned this peg, while Bulgaria still maintains it. How did these differences in monetary policy come about? What are the political motives behind these decisions? The podcast establishes connections and provides possible explanations.

Authors: Laura C. David, Rainhard Jungreithmeyer, Alina Mogititsch, Alexander Regner;

Language: English

Malaysia and Indonesia are neighbouring countries and are comparatively similar in terms of culture, history and population structure. However, there is a noticeable economic difference in the regulation of the FinTech sector. Malaysia is characterised by an above-average level of regulatory activity, particularly with regard to cryptocurrencies. In Indonesia, on the other hand, there are fewer regulatory bodies for this area overall; there are only specialised authorities for digital banking transactions and crowdfunding that take on regulatory tasks. However, representatives of the authorities in both countries say that consumer protection is the top priority. The podcast gets to the bottom of the question of why the FinTech sector is much more heavily regulated in one country than the other and what advantages and potential risks lie in the two approaches.

Authors: Lennard Bo, Letizia Schramli, Ruben Schwinge, Verena Stelzmüller

Language: English

Chile and Uruguay are very similar economically. In both countries, the primary economic sector still plays a relatively important role, but both orientate their economic policy towards a market economy, which also attracts investment from abroad. Although Chile has a reputation for making it easy for foreign investors to enter the national market, it is very cautious and restrictive, particularly in the agricultural and natural resources sectors. Foreign companies must first conclude mining contracts with the government in order to exploit mineral resources, for example. Uruguay is different. Since 1989, it has been regulated that investments are fundamentally in the interests of the state and that domestic and foreign investments are therefore treated equally and protected by law; investors do not require any special authorisations. The podcast looks in detail at why the two countries have taken such different approaches to FDI, particularly in the primary economic sector.

Authors: Nils Domenz, Maximilian Mara, Vitus Naber, Chelsea Dale Wilson

Language: English

For small economies like Brunei, Fiji or Kuwait, it is particularly important to connect with other economies through trade relations and international capital flows. There is a link between a fixed exchange rate to other currencies, free movement of capital and an independent monetary policy. The so-called Mundell-Fleming trilemma states that a country can never maintain all three factors simultaneously. Brunei, Fiji and Kuwait have each set different priorities in order to survive as small economies. But for what reasons? How can it be determined which two of the three factors should be prioritised? The podcast looks at the three countries mentioned and tries to derive explanations for the different approaches.

Authors: Ibrahim Dinc, Lisa A. Ficzko, Rafaela Kattner, Michael A. Maier;

Language: English

Ruling electoral candidates want to be re-elected in order to stay in power. According to the theory of "political business cycles", one of the ways they do this is by providing short-term economic incentives before upcoming elections in order to influence the outcome in their favour. The podcast looks at the situation in two neighbouring countries: Sudan and Chad. Both countries are considered underdeveloped and economically unstable, and both countries have been and continue to be ruled autocratically. In Sudan, President Omar al-Bashir, who has ruled as a dictator since 1989, stood for re-election in 2010, which he won by a large majority. It was striking that Sudan experienced a remarkable economic upturn shortly before the election. Four years earlier, in 2006, the autocratic president of Chad, Idriss Déby, who had been in office for just as long, also wanted to be re-elected. In this case, however, there was no comparable economic upturn before the election. The podcast explores the background to these differences.

Authors: Hannah Hössinger, Sophie Palige, Felix Plattner

Language: German

Elections to the State Duma were held in Russia in 2016 and 2021. However, in contrast to 2016, Russian President Putin authorised generous special payments to public servants before the 2021 elections. What was the president's strategy in making this decision? What effects did he hope it would have? The podcast analyses the topic of "Political Business Cycles" to answer these questions.

Authors: Hannah Appelt, Philipp N. Henßler, Jana Pörnbacher, Iris Reichspfarrer, Annalena Riegler, Max E. H. von Wedemayer;

Language: German

After long discussions, the electoral law in Japan was fundamentally changed in 1994. Since then, the members of the lower house are elected by a combination of majority and proportional representation. But why was it not until 1994 that a political agreement could be reached? How did the changes affect the Japanese parties? Were there parties that particularly benefited or lost out in the process? The podcast examines and explains the changes in the Japanese electoral system and shows political correlations.

Authors: Matthias Hofinger, Pierce R. C. Johnston, Gyöngyvér T. Karabelyos, Jakob Korosec, Fabian P. Mono, Nico Schuh, Manuel Skrobanek;

Language: German

To what extent can groups with different levels of representation have a say in the decision-making process of larger organisations? What majorities must be achieved in certain subject areas in order for binding resolutions to be passed? The issue of protecting underrepresented minority groups is often discussed politically, but is also becoming increasingly important in business. In Germany, for example, even from a historical perspective, simple majority decisions are accorded greater importance - even though the law naturally provides mechanisms to protect the interests of minority shareholders. In France, on the other hand, minority shareholders and even holders of individual shares enjoy far more extensive protection of their interests. The podcast deals with the question of the purpose of regulations to protect minority shareholders and sheds light on the background to the different developments in Germany and France.

Authors: Pia K. Löffler, Cassian M. Minikus, Michael Weilch

Language: English