This volume was prepared by Markus Reischmann while he was working at the Ifo Institute. It was completed in June 2015 and accepted as a doctoral thesis by the Department of Economics at the University of Munich in November 2015. It includes five self-contained chapters in the fields of public...

Using an estimated large-scale New-Keynesian model, we assess welfare and business cycle consequences of a fiscal union within EMU. We differentiate between three different scenarios: public revenue equalisation, tax harmonisation and a centralised fiscal authority. Relative to the status quo,...

We present a two-country New Open Economy Macroeconomics model of a currency union featuring an overlapping generations structure of the Blanchard (1985)-Yaari (1965) type as well as monopolistic frictions and staggered adjustment in the goods and labor market. We allow for public investment and...