An explanation is given why communist economies usually react smoothly but sometimes very dramatically to seemingly minor changes in the political and economic environment. In this paper such dramatic reactions materialize in a sudden clamp-down on individual freedom and sudden economic...

Austerity measures alone will not suffice to generate the growth needed for recovery in Greece, Portugal, Spain and Italy. A European Recovery Programme is necessary to stimulate growth through structural reforms and fiscal stimulus. This contribution describes policy areas where non-fiscal...