We show how in a Blanchard-Yaari, overlapping generations framework, perfect substitutability of government bonds in Monetary Union tempts governments to exploit the enlarged common pool of savings. In Nash equilibrium all governments increase their bond financed transfers to current generations...

This paper analyzes the efficiency of risk-taking decisions in an economy that is prone to systemic risk, captured by financial amplification effects that occur in response to strong adverse shocks. It shows that decentralized agents who have unconstrained access to a complete set of Arrow...

This paper reviews the key economic issues concerning the welfare costs of inflation and deflation, with a view to shedding light on the desirable properties of the inflation process. Our review of the evidence on the overall costs of inflation and deflation indicates that such costs could be...

Drug use and drug-related problems continue to be a major concern for EU citizens, as well as being a significant public health and public safety issue. Around one quarter of the adult population is estimated to have used illicit drugs at some point in their lifetime, with cannabis the most...

Drugs and drug-related problems are major concerns for EU citizens and a major threat to the security and health of European society. The use of drugs, particularly among young people, is at historically high levels. The European Commission has been studying the importance of drug-related...