The Euro area is currently going through its worst period of recession and economic stagnation since the Great Depression and World War II. The article tries to give an impression of the extraordinary degree of fiscal austerity and the devastating economic effects it has already had and must be...

Since 2008, economic policymakers and researchers have occupied a brave new economic world. Previous consensuses have been upended, former assumptions have been cast into doubt, and new approaches have yet to stand the test of time. Policymakers have been forced to improvise and researchers to...

Contents -- Preface -- I Monetary Policy -- Questions: How Should the Crisis Affect Our Views of Monetary Policy? -- 1 Monetary Policy in the Wake of the Crisis -- 2 Conventional Wisdom Challenged? Monetary Policy after the Crisis -- 3 Lessons for Monetary Policy -- 4 Macroeconomics, Monetary...

Fiscal policy in the Euro area is still dominated by austerity measures implemented under the institutional setting of the 'reformed' stability and growth pact, and the even stricter 'fiscal compact'. At the same time, calls for a more expansionary fiscal policy to overcome the economic crisis...