One channel of business cycle shock transmission which gained attraction only recently is the confidence channel. The aim of the paper is to find out whether the confidence channel is actually working between the US and Germany. This is analysed using times series methods. In contrast to other...

Why in recent years has the European economy failed to keep pace with that of the United States? And why, as a result, has the unemployment rate been twice as bad? These three papers — presented to Parliament’s Economic and Monetary Affairs Committee at the beginning of 2000 — suggest reasons...