The German debt brake is often regarded as a great success story, and has therefore served as a role model for the Euro area and its fiscal compact. In this paper we fundamentally criticize the debt brake. We show that (1) it suffers from serious shortcomings, and its success is far from certain...

After reviewing the main determinants of the current eurozone crisis, this paper discusses the feasibility of introducing fiscal currencies as a way to restore fiscal space in peripheral countries, like Greece, that have so far adopted austerity measures in order to abide by their commitments to...

This paper is the overview chapter of an edited volume on "The Distributional Effects of Government Spending and Taxation." The paper offers the author's perspective on the government's role as a redistributive agent. Taxation and public spending programs are analyzed using the experiences of...