The world economy faces a grave danger from the large imbalances in current account positions. Policymakers should not wait until financial markets force global adjustment. They should initiate a credible, comprehensive adjustment program to reduce the risks of a crisis, which could produce a...

Alan Ahearne and Jean Pisani-Ferry explore the implications of economic divergence in the euro area for policy makers, as well as the discipline required to be part of the single currency. From this analysis they derive policy recommendations, both for the policies and monitoring of existing...

Governance of the global economy is becoming a pressing matter and the situation is compounded by the growing number and diversity of players in the global economy. The authors argue that Europe is now in a position to take a leading role. Not only is it in Europeâ??s interest to reform the...

Alan Ahearne, Jean Pisani-Ferry, André Sapir and Nicolas Véron contributed this paper to the project "Globalisation challenges for Europe and Finland" organised for the secretariat of the Economic Council of Finland. The project is part of Finland's EU Presidency programme and its objective is...

This report surveys the economic performance of the euro area and gives recommendations about six policy challenges of major importance for the future of EMU.