Contents: 1. Das Deutsch-Französische Wirtschaftspolitische Forum...1 -- 2. Opening Address, Dominique Strauss-Kahn...2 -- 3. Does EMU Need an Employment Pact? - Klaus-Werner Schatz, Institute of World Economics, Kiel...3 -- 4. Is the Stability Pact an Efficient Agreement? - Patrick Artus,...

In this paper we estimate the effects of transition and political instability in the Eastern European and Balkan transition countries on their FDI inflows. For transition countries unaffected by political instability, FDI inflows in the 1990s were around 20 to 30% of those achieved by European...

This paper presents a business cycle model with financial intermediation encompassing the conventional New Keynesian model. Households’ financial wealth comprises cash and interest bearing deposits. When deposits provide transaction services, real broad money, which is predetermined, affects...

In contrast to Robert Mundell's Optimum Currency Area theory and his recommendation of forming a monetary union, the economic fundamentals of Euro area member countries have not harmonized. The opposite holds: the Euro core countries - most of all Germany, but also the Netherlands and Finland -...

We study the channels of interstate risk sharing in Germany for the time period 1970 to 2006 following the methodology of Asdrubali et al. (1996). Their framework allows us to estimate the degree of smoothing of a shock to a state's gross domestic product by factor markets, the government...

We provide empirical estimates of the risk-sharing and redistributive properties of the German federal fiscal system based on data from 1970 until 2006, with special attention to the effects of German unification. We find that tax revenue sharing between the states and the federal government and...

Die Zugehörigkeit Griechenlands zur Währungsunion beruht nicht auf einer Zwangsmitgliedschaft. Griechenland steht es frei, jederzeit seine Mitgliedschaft in der Europäischen Union aufzugeben. Die anderen Mitgliedstaaten dürfen Griechenland von einem Austritt aus der Europäischen Union nicht...