Starting with the Treaty of Rome (1957), the European Union adopted common policies to promote “harmonious economic development and balanced expansion.” The paper investigates how successful such policies were, by examining whether there was economic convergence of the real per capita GDP in...

1. From the Great Depression to the Great Recession -- 2. Causes of the US subprime mortgage crisis -- 3. The crisis spreads to Europe -- 4. Why the European sovereign debt crisis has lasted so long -- 5. US fiscal and monetary policy to cope with the Great Recession -- 6. The role of Germany in...