While the German federal fiscal system has been successful in promoting a high standard of living even in regions whose economic capacity is low, tensions have emerged. <I>Firstly</I>, it has been difficult to ensure a sustainable fiscal policy, and the size of the overall deficit makes it difficult...</i>

The new and prospective entrants to the EC join an economic environment that itself is undergoing rapid change. The combination of the European Monetary System (EMS) and the integration of European financial markets in 1992 will alter substantially the environment of monetary and fiscal policy...

The historical record suggests that economic development is associated with the rise of the financial sector. This rise is often triggered by exogenous events such as large budget deficits generated by wars or the availability of large investment projects such as railroads. This paper discusses...