We consider the impact of anticipated policy changes when agents form expectations using adaptive learning rather than rational expectations. To model this we assume that agents combine limited structural knowledge with a standard adaptive learning rule. We analyze these issues using two...

This book examines existing problems in the European economy, focusing on labour markets, including labour market reform and outsourcing, as well as macroeconomic issues, such as macroeconomic stabilization in the Euro area and convergence and divergence in economic growth in the EU.