Policymakers in the EU member states are currently shaping rescue packages to prevent the financial crisis hitting their economies with unmitigated force. Each government is responding to the emerging problems with a country-specific set of measures. Given the global nature of the crisis, would...

Schmieding, H.: The case against a common fiscal boost in Europe. - S. 4-9 Gros, D.: Covergence and divergence in public finance. - S. 10-12 Boeri, T.: Seizing the European day. - S. 13-15 Belke, A.: Fiscal stimulus packages, uncertainty and economic crisis: is the option of waiting valuable? -...

The success of European Economic and Monetary Union (EMU) will depend on the stability of the euro. The monetary policy framework is yet to be decided, but is likely to involve either money or inflation targeting. Stochastic simulations compare the outcomes for major macroeconomic and financial...

In an interconnected world, national economic policies regularly lead to large international spillover effects, which frequently trigger calls for international policy cooperation. However, the premise of successful cooperation is that there is a Pareto inefficiency, id est if there is scope to...