The authors fundamentally question the claims that institutional sclerosis explains the present economic stagnation in Germany. Instead, they argue that the combined effects of restrictive monetary policies, restrictive and sometimes pro-cyclical fiscal policies, and overly moderate wage...

The current global recession, along with the credit crisis, requires that the prevailing economic model be seriously debated and, these economists contend, reformed. The authors criticize the mainstream New Consensus approach in macroeconomics for its reliance on stabilization by means of...