Chapter 2 focuses on Switzerland, and specifically on the lessons that Europe can learn from the Swiss experience in maintaining cohesion while supporting diversity, and in reaching pragmatic compromises in the creation of common institutions and policies.

Chapter 3 analyses the much debated issue of austerity and highlights that fiscal discipline is not only needed to ensure the long-term sustainability of public debt, but also for external rebalancing, which is vital to the long-term sustainability of the euro. Finally,

Chapter 4 looks at plans and measures to implement a banking union in Europe and discusses who will pay for future banking crises, and who will end up footing the bill for the latest crisis.

Chapter 1 of the report discusses the immediate macroeconomic outlook for the global economy, with a particular focus on the European situation.

Expanding on topics that were discussed in previous issues, this year’s report of the European Economic Advisory Group at CESifo (EEAG), the thirteenth of the series, shows that austerity is still necessary to achieve a rebalancing of relative prices within the euro area and offers a critical...

Authors of the Report on the European Economy 2014

Studies the influence exerted by the 1981 and 1986 U.S. tax reforms on international movements and it attempts to demonstrate that the economic fluctuations described may well have been reinforced, if not caused, by these reforms.

This book offers a critical assessment of the history of the euro, its crisis, and the rescue measures taken by the European Central Bank and the community of states. The euro induced huge capital flows from the northern to the southern countries of the Eurozone that triggered an inflationary...