In the contemporary capitalism model and in relation to the functioning of the economy there is a counterproductive view of the state as an institution. This has led to a reversal of the hierarchy between the state and the private sector, since it subordinates states to markets. Fiscal policy...

Following the British decision to leave the European Union, the question arises as to how relations should be conducted going forward. The objective of the negotiations between Great Britain and the EU is to ensure which strategy is best - both for the British and the EU. Another important...

This paper is aimed at providing advice to young Australian Politicians and Policy Analysts. The paper explains common dangers in policy formulation and implementation. It also explains the usual political pressures that distort policy formulation and common sources of policy failures.

Recent analyses relate increases in the growth rate of countries to anticipation effects caused by bidding for the Olympic Games, so called news shocks. We argue that these findings should be interpreted cautiously. First, these analyses may suffer from an omitted variable bias because they...

Ben Bernanke researched monetary policy for over 25 years prior to becoming a policymaker, and his two-term career as Chairman of the Federal Reserve featured a severe recession coupled with a nancial crisis, a chief subject of Bernanke's research. His reaction to economic events is noteworthy...

In diesem Beitrag werden die bisherigen sowie die zukünftigen Gesamtkosten der Beteiligung Deutschlands am Krieg in Afghanistan geschätzt. Es handelt sich hierbei um eine Berechnung mit zahlreichen Unsicherheitsfaktoren, die auf mehreren wichtigen Annahmen basiert. Es werden verschiedene...

This paper analyzes the role of contagion in the currency crises in emerging markets during the 1990s. It employs a non-linear Markov-switching model to conduct a systematic comparison and evaluation of three distinct causes of currency crises: contagion, weak economic fundamentals, and...

When enough agents do not participate in asset markets, the slope of the aggregate demand curve is reversed. Monetary policy should be passive, to ensure equilibrium determinacy and to minimize variations in output and inflation. This paper presents evidence that asset markets participation in...

Previous studies have interpreted the rise and fall of U.S. inflation after World War II in terms of the Fed's changing views about the natural rate hypothesis but have left an important question unanswered. Why was the Fed so slow to implement the low-inflation policy recommended by a natural...

Many economists are convinced that longer-term benefits from fiscal consolidation are in a trade-off with short-term deceleration in output growth. However, more recent research suggests that curbing fiscal imbalances contributes to faster growth already in the short term. This paper is about...