Where Would Europe Stand Today Without the Euro?

ECB bashing is the favorite sport of the economically uneducated. They should pause and think: where would Europe stand in today’s financial turmoil without the euro? The DM would shoot up to levels devastating German industry; excessively high interest rates would push up French unemployment and the Italian lira would fall through the floor, distorting […]

Reflections On Europe’s Constitution Or Why Europe Needs A Political Union With Full Democracy

It is obvious: Europe is in a crisis. This crisis affects the economy and the Union’s institutions, but the negative outcome of the French and Dutch referenda on the European Constitutional Treaty also reveal a profound political-ideological crisis. A way out cannot be achieved by economic reforms alone; institutional reforms are needed and they require […]

The European Policy Mix after the Financial Market Crisis

How does the crisis in financial markets affect economic growth in the real economy? What are the appropriate policy reactions to minimize the negative impact? If monetary policy is the crucial instrument to stabilize the banking system, its efficiency depends on the interaction with fiscal and wage policies. At the core of the financial crisis […]