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In 1937, in the midst of the US recovery from the Great Depression, President Roosevelt implemented spending cuts in pursuit of a balanced budget. Subsequently, the unemployment rate jumped nearly 6 percentage points over the next year and the US economy re-entered a major recession. In the...
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than ever, the ECB is willing to dampen asset bubbles in the early stage of their formation. This article explains what the … ECB can learn from historical asset bubbles in EU eurozone member countries. The empirical analysis indicates that asset … bubbles in some member countries are mostly followed by asset bubbles in further member countries, which supports the ECB …
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Against the backdrop of the considerable increase in protectionist measures that could be observed during the recent financial crisis, this article investigates the following questions: Are “Buy National” clauses a suitable instrument to internalise the externality that arises because the...
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