On the difficulty of investing sustainably in the future. And how it can be done

Michael Thöne

FiFo / March 2020 / Discussion Paper, FiFo-Köln

Abstract
This talk was delivered on 14 February 2020. It is now published as a discussion paper on 20 March 2020. Five weeks ago – in quite a different time. In the middle of the corona pandemic and at the beginning of a severe economic crisis, publishing a paper on long‐term effective investments in the future and the sustainability of financial policy suddenly looks out of date. At first glance. Of course, it is never outdated to talk about the future. And of course, we have to deal acutely and above all with the burning issues of crisis management. With the up‐to‐the‐minute postscript “Future investments in the in times of the Corona‐pandemic”, I would like to shed light on the relationship between the short‐ and long‐term challenges. The scale of the acute tasks is immense. But the damage from the current crisis will be even greater if it is played off against the structural tasks of the future. Here we can learn from the mistakes of the last economic crisis. The script of the talk from February is reproduced here essentially unchanged. In part, it contrasts with the following comments on fiscal policy in the Corona crisis. In other parts, it fits remarkably well. Ultimately, both parts look at the two sides of the same coin. Our tasks for the future will not disappear because we have to take acute care of the epidemic. The challenges have become considerably greater as a result, and our problemsolving capacities are even more required. The paper shows how we can take a holistic view of the responsibilities that have grown so dramatically – and then tackle them.