The sub-prime crisis began in mid-2007 as a bursting of the US housing market bubble and became a truly global meltdown in 2008. Renewed instability in financial markets precipitated awareness of how policy makers must react to systemic failures. This paper discusses the primary policy issues...

EMU's design is seriously flawed. Monetary union was established without political union, creating a single eurozone economy that cannot be governed with the combination of macroeconomic policy instruments that modern national governments have. Its exceptionally independent central bank, the...