In light of the failed negotiations with Greece, Jan Krahnen argues that an effective reform agenda for Greece can only be designed by the elected government. Fundamental reforms will take time to take full effect and euro area member states will, in the meantime, have to offer Greece a basic...

We study Ramsey policies and optimal monetary policy rules in a model with sticky prices and unionized labour markets. Collective wage bargaining and unions monopoly power dampen wage fluctuations and amplify employment fluctuations relatively to a DNK model. The optimal monetary policy must...

The Banking Union is a project started by the European Union since 2010 for the financial stability of the euro area. After the U.S. subprime mortgage crisis in 2007, a radical revision of the bank control systems became manifestly visible in the EU regulatory framework. The Banking Union is...