We revisit the theoretical underpinnings of the monetary policy consensus before the Great Recession. We highlight how they resulted from New Keynesian dynamic stochastic general equilibrium (DSGE) models that (i) neglected the actual process of coordination in markets, (ii) saw price rigidity...

This contribution assesses the functioning of Europe's Economic and Monetary Union (EMU) during the first 20 years of the euro's existence. It argues that two formative intellectual currents converged at Maastricht to shape the design and reception of the euro regime: ordoliberalism and...

Fiscal rules are argued to be important for sound and sustainable fiscal policies and have been increasingly adopted over the last 20 years. However, as increased fiscal pressure and fiscal risks urge countries to address the public debt legacy left by recent economic crises, fiscal rules come...

Das Jahr 2022 – ein Zeitenumbruch. Inwiefern ist dieser Zeitenumbruch mit einem gesellschaftlichen Gestaltungswillen verbunden? Der vorliegende Artikel will Argumente dafür liefern, diesen Zeitenumbruch im aktiven Sinne zu verstehen – als Ausdruck der kooperativen Gestaltung und des...

Christian Lindner, Bundesminister der Finanzen, stellt den Regierungsentwurf für denBundeshaushalt 2024 und den Finanzplan bis 2027 in den Kontext seiner finanzpolitischenStrategie und leitet den weiteren Handlungsbedarf ab. Um Prioritäten zur Stärkungvon Zukunftsausgaben setzen zu können,...

The European Union has weathered a number of turbulent storms in recent years from the COVID-19 pandemic to the ongoing war in Ukraine. These crises have highlighted the limitations of the EU budget and the need for the flexibility to adequately respond to challenges in real time. They have also...

As country after country in the European Union is called to respond to the current challenge of our time - high inflation and declining real wages - governments must engage in a transformative agenda and go beyond emergency energy vouchers and income support cashtransfers. And if the goal is to...

We develop an endogenous growth model with public consumption and infrastructure services provided by two-tier governments. Growth performance and welfare implication are compared under the centralized and decentralized fiscal federal systems. In general, there is a trade-off between welfare and...

Since 1991 there has been a reinforcement of the World Market Economy, not least since China and the, then new Russian Federation have joined the World Trade Organization and because of EU Eastern enlargement and ASEAN integration deepening, while the Transatlantic Trade and Investment...

Governments can issue public debt for both good and bad reasons. The former include intertemporal tax smoothing, fiscal stimulus, and asset management. In contrast, the bad reasons, which generate higher indebtedness, are mainly associated with political cycles, rent capture, intergenerational...