This paper reviews the performance of the euro area since the euro's launch 20 years ago. It argues that the euro crisis has exposed existential flaws in the euro regime. Intra-area divergences and the corresponding buildup of imbalances had remained unchecked prior to the crisis. As those...

This research note discusses the Euro crisis in Greece in light of the referendum of July the 5th. It lays out the social and political costs of a GREXIT, but also of a continuing austerity policy. It proposes a reform policy fostering growth in Greece and discusses the role of conditionality....

Aufgrund der seit langem geführten Debatte um das Für und Wider der Nutzung des Politikinstruments der Staatsverschuldung wissen wir recht viel darüber, was Experten (z. B. Finanzpolitiker/‌-‍wissenschaftler) von Haushaltskonsolidierung, Deficit-Spending oder Verschuldungsgrenzen halten....

In this paper, we test whether German public debt has been sustainable by resorting to a test proposed by Bohn (1998). We apply non-parametric and semi-parametric regressions with time depending coefficients. This test shows that the mean of the coefficient relevant for sustainability has been...

The coming relief packages should be precisely targeted in the form of transfers for those on low incomes. In times of inflation, the efficiency of government fiscal policy is of particular importance. Additional spending projects should be critically examined accordingly. In the face of acute...

To address the distributional consequences of high inflation rates, measures are needed that target those most in need without distorting prices. The function of the price as scarcity signal is important to encourage energy saving. Direct price subsidies such as the fuel price rebate, on the...

The coming relief packages should be precisely targeted in the form of transfers for those on low incomes. In times of inflation, the efficiency of government fiscal policy is of particular importance. Additional spending projects should be critically examined accordingly. In the face of acute...

To address the distributional consequences of high inflation rates, measures are needed that target those most in need without distorting prices. The function of the price as scarcity signal is important to encourage energy saving. Direct price subsidies such as the fuel price rebate, on the...

The German debt brake is often regarded as a great success story, and has therefore served as a role model for the Euro area and its fiscal compact. In this paper we fundamentally criticize the debt brake. We show that (1) it suffers from serious shortcomings, and its success is far from certain...

In the P-star model the price level is determined by the money stock per unit of potential output and the long-run equilibrium level of the velocity of money. This article applies this model to Austria. Problems in identifying permanent shocks to potential output and/or velocity lead to the...