The global supply of natural gas is fixed in the short run. Europe can replace the missing Russian gas only by bidding more than consumers elsewhere, especially in Asia, are willing to pay. The supply of gas available for Europe is thus highly inelastic; therefore, the marginal cost is an order...

With European governments cutting back on spending, many are asking whether this could make matters worse. In the UK for instance, recent OECD estimates suggest that 'austerity' will lead to another recession, which in turn may lead to a higher debt-to-GDP ratio than before. As the debate heats...

With disparities in national unemployment rates reaching record levels, the debate on fiscal stabilisers in Europe has gained new momentum. Can a European unemployment insurance scheme help to absorb asymmetric shocks and bring about the desired level of macroeconomic stabilisation? What should...