The stagnation of the economy in the Euro area since 2000 is closely connected to the dominance of purely long-run supply-side oriented policies in the Euro area. While exports and profits soared, domestic demand has been weak. The neglect of cyclical and demand factors appears to be the major...

Faced with an economic slowdown, the Austria federal government implemented two economic stimulus packages in 2001 and 2002 respectively. These packages provide for additional public expenditure, most of which has been advanced by one or two years, particularly with regard to public...