The euro crisis has highlighted a range of problems with the "euro project." These problems and difficulties are related to fundamental weaknesses of the euro and the lack of a financially unified European Monetary Union. This short article attempts to explain the original shortcomings of the...

The Bank of England's report on its approach to macroeconomic modeling reveals the underlying structure of their macroeconomic model used for policy purposes. A simplified representation of the Bank of England model is presented, which is less disaggregated than the original model and focuses on...

We have sketched in this paper the theoretical foundations of the 'third way', and suggested that they are rooted in the New Keynesian tradition. Furthermore, we argued that the EMU theoretical foundations are embedded in this theoretical approach. We have examined the policy implications of the...

The initial introduction of the euro has, against many expectations, been accompanied by a decline in the value of the euro (notably vis-à-vis the dollar and sterling). It has also been introduced at a time of high levels of unemployment within most of the European Union (EU). This paper...

In this paper we seek first to set out the economic analysis that underpins the ideas of what has been termed the third way. The explicit mention of the third way is much diminished since the early days of the Blair government in the UK and the Schroeder government in Germany. We argue that the...

Within the framework of macroeconomic policy and theory over the past twenty years or so, a major shift has occurred regarding the relative importance given of monetary policy versus fiscal policy. The former has gained considerably in stature, while the latter is rarely mentioned. Further,...