The DAX is hitting new highs, while the interest paid on our savings accounts is lagging behind the rate of inflation, widening the gap between rich and poor. Rising asset prices and low real interest rates have thus sparked an interdisciplinary debate about the social, political and economic consequences of inequality and how the financial markets influence the dynamics of inequality. “Up until now, however, much of the empirical evidence available for the link between inequality and the world of finance has come from the US and relates to the period post-1970,” says Professor Carsten Burhop from the Department of History at the University of Bonn, who is the speaker for the Centre for Advanced Studies.
The main aim of the new center is therefore to study other countries and eras from an international perspective. “We want to combine multiple angles—that of financial history, business history, finance in general and macroeconomics—into one,” adds the second project lead Professor Christian Bayer from the Institute for Macroeconomics and Econometrics. He is also a member of two Clusters of Excellence: the Hausdorff Center for Mathematics at the University of Bonn and ECONtribute at the Universities of Bonn and Cologne.
The Finance and Inequality Centre for Advanced Studies is to become part of the Individuals and Societies Transdisciplinary Research Area (TRA) at the University of Bonn, which is run by the Faculty of Law and Economics and the Faculty of Arts. The University of Bonn is supporting the CAS by funding two additional Senior Fellowships, while the DFG will be providing the center with several million euros in funding over the next four years.
About Centres for Advanced Studies in Humanities and Social Sciences
By establishing Centres for Advanced Studies in Humanities and Social Sciences, the DFG provides specific support to working methods in these disciplines. A number of highly reputable researchers come together to explore a broadly defined topic that also leaves them scope for their individual research ideas.
Meanwhile, Research Units enable researchers to tackle some of the pressing questions in their fields of expertise and open up innovative areas of work. They can be funded for up to eight years.