Public discussion and the media have put the global debt crisis right at the centre of attention. The discussion, however, is unduly focussed on public indebtedness as the dominating cause. As a consequence, the appropriate remedy is seen in restricting public expenditure. Yet this ignores...

The Queen's question "Why did no one see it coming" provoked professional economists as well. A fierce discussion arose how to modify and improve theory and models. A survey of the literature reveals that almost a hundred analyses warned against the instability of several mechanism, be it...

WIFO in general and Karl Aiginger in particular were among the first to point out that in highly developed industrial countries prices and costs are just one of many (and usually not even the most important) elements of competitiveness; in this case applying business management insights to...

Die Lebenszufriedenheit der Österreicher ist bisher durch die Finanzkrise (fast) nicht beeinträchtigt worden. Das bedeutet nicht, dass man die Krise hierzulande ignoriert: Die Einschätzung der internationalen Wirtschaftslage durch die Österreicher und ihre Erwartungen reagierten sehr wohl...

European banks have accumulated important risks through excessive rescheduling of debt maturities, purchase of US derivatives and loans extended to companies and households of the European periphery. Aggressive lending in the – already before structurally weak – periphery countries fuelled...