After the recent global financial crisis several countries on the eurozone's south-western periphery, in particular Greece, Spain, Portugal and Ireland, have faced severe difficulties involving the risk of sovereign debt defaults and a new banking crisis. Other EU countries, above all France,...

This paper reconsiders the determinants of the exchange rate by studying the historical episode after the fall of the Iron Curtain. Testing a modified portfolio balance model, we attribute the strength of the deutschmark in the early nineties and the puzzling decline of the euro during its...

Current developments in Greece make clear that the rules of the European Stability and Growth Pact (SGP) were neither strict enough nor enforced strictly enough. To deal with the ongoing fiscal exit and its related phenomena of crisis, we propose a new framework for fiscal policy consolidation...

As a result of the Balassa effect relative prices change rapidly between and within the euro countries. Thus it is impossible to find a common monetary policy that will result in price stability in all countries. Based on empirical estimates of the Balassa model, the paper calculates a minimum...

Seit einigen Jahren bereits taumelt Europa von einer Krise in die nächste. Allen Beschwichtigungen zum Trotz verlieren Deutschland und die europäischen Staaten des Nordens durch den Euro unaufhörlich Milliardenvermögen zugunsten überschuldeter Volkswirtschaften in Südeuropa. 2015 erlebte...