Based on a post-Keynesian model of the relationship between wages, prices and employment, this paper begins by studying the extent to which unit labour cost trends have been responsible for disinflation and deflationary tendencies in Germany and Europe. Thereafter, the reasons for the...

This paper traces the euro zone's inadequate macroeconomic performance in recent years back to the predominance of a restrictive macroeconomic policy mix based on a 'new monetarist' approach to economic policy. An approach based on a (post-)Keynesian analysis is presented as a growth and...

Das im EWU-Vergleich zurückbleibende deutsche Wirtschaftswachstum wird immer wieder zum Anlass genommen, vor allem auf dem Arbeitsmarkt stärkere Flexibilität einzufordern. Sind die Ursachen für das schwache Wirtschaftswachstum Deutschlands tatsächlich primär auf dem Arbeitsmarkt zu suchen?...

It is by now widely accepted that the structural characteristics of the countries to become the euro area did not adhere to the conditions of an optimum currency area (OCA) when the euro was introduced in 1999. However, the satisfaction of OCA criteria may not be required for a workable currency...

Europäische Finanzpolitik: Ausgabenpfade als konjunkturgerechte Alternative zum Stabilitäts- und Wachstumspakt. Seit dem Begin der Europäischen Währungsunion (EWU) steht die Finanzpolitik in Staaten des Euroraums im Zeichen des Stabilitäts- und Wachstumspaktes (SWP). Allerdings ist keines...

In the present paper we question the mainstream diagnosis of Germany's post-2000 stagnation as well as the prescribed remedies. We show that the "institutional sclerosis" view of Germany's stagnation is unfounded and that therefore the political measures proposed and actually taken are...

In order to explain slow growth and high unemployment in the Euro area, in particular if compared to the USA, we follow a macroeconomic policy view focussing on the more restrictive stance of monetary, fiscal and wage policies in the Euro area. In the present paper we focus on the particular...

Since the start of the European Monetary Union fiscal policy in the Euro area has been dominated by the Stability and Growth Pact (SGP). Quite obviously the SGP has been unsuccessful in fulfilling its goals, fiscal sustainability and supporting economic growth. More and more countries have...