The economic crisis in the euro zone proves that neither the creators of the euro nor today's policy-makers fully understand the functioning of a currency union. Explanations of the macroeconomic relations inside a currency union are therefore in demand. It is now clear that macroeconomic...

"The Alchemy of Finance", a book written by George Soros (1987) on the workings of financial markets, "has found a place in the reading lists of business schools as distinct from economics departments", according to the author (2003, 4). His theory of reflexivity, which is at the center of the...