This paper assesses the economic implications of the United Kingdom leaving the European Union. The basic data on trade in goods and services and investment between the two parties suggest that cost of ‘Brexit’ could be substantial. Trade between the UK and the EU27 is large and of a similar...

Employment and labor force participation (LFP) rates have increased throughout Europe since the 1990s, with little interruption from the Great Recession. While many credit labor market reforms for this progress, ongoing educational expansion might actually be more important. This implies that...

The recent financial crisis was caused by a combination of asset price bubbles, mainly in the real estate sector, and a credit bubble that led to excessive leverage. A recurrent theme of this paper is that an appropriate assessment of the crisis should be made in light of the bubble that...

Nachkrisenzeit! Halten Sie sich fest: Nichts wird so, wie es einmal war und es wird auch nie wieder so sein. Werfen Sie alle gelernten Denkmuster schnell über Bord, gewöhnen Sie sich an ein neues Weltbild, die Kräfteverhältnisse haben sich über Nacht grundlegend verändert

Europeans have a tendency to call the financial crisis a US problem, or a crisis precipitated by the "Anglo-Saxon" model. The data suggest otherwise. Moreover, the corporate sector in Europe has a much lower capacity to finance investment from internal sources of funds, which implies that a...