Main navigation

full text search

Content

Image of the cover page of Intereconomics

Current issue

Volume 45 · issue 4 · July/August 2010

Contents

Articles

  • Dorothea Schäfer · Will the Stress Tests for Banks Improve the Stability of Financial Markets?
  • Alasdair Roberts · “An Ungovernable Anarchy”: The United States’ Response to Depression and Default, 1837-1848
  • Peter Bofinger, Stefan Ried · A New Framework for Fiscal Policy Consolidation in Europe
  • Vera Glassner, Andrew Watt · Cutting Wages and Employment in the Public Sector: Smarter Fiscal Consolidation Strategies Needed
  • Reiner Martin · Boom and Bust in the Baltic Countries – Lessons to be Learnt
  • Rudolf Adlung · Trade in Healthcare and Health Insurance Services: WTO/GATS as a Supporting Actor (?)
  • Thomas Döring, Eithne Knappitsch, Birgit Aigner · Municipalities and Regions in Locational Competition – New Economic Considerations
  • Matthias Busse · Revisiting the ACP-EU Economic Partnership Agreements – The Role of Complementary Trade and Investment Policies
  • Ray Barrell, Tatiana Fic · Risks of Deflation versus Risks of Excessive Inflation in Europe

In the current issue

“An Ungovernable Anarchy”: The United States’ Response to Depression and Default, 1837-1848

by Alasdair Roberts

American commentators have criticized European leaders for failing to deal firmly and swiftly with the eurozone’s sovereign debt crisis. These commentators forget the lessons of American history. The United States experienced a similar crisis following the financial panic of 1837. Eight states defaulted and political turmoil intensified, undermining stability in several states and the federal system itself. The restoration of economic and political order was a prolonged and painful process, as enraged voters confronted the costs of inaction and accepted new constraints on democratic processes. Will the European crisis play out similarly? more (PDF, 117 kB)

A New Framework for Fiscal Policy Consolidation in Europe

by P. Bofinger, S. Ried

Current developments in Greece make clear that the rules of the European Stability and Growth Pact (SGP) were neither strict enough nor enforced strictly enough. To deal with the ongoing exit from the fiscal crisis and its related phenomena, we propose a new framework for fiscal policy consolidation in Europe. The centrepiece is a European Consolidation Pact to supplement the SGP which would supply loan guarantees in exchange for a fee and stricter budget consolidation measures. The new framework also spells out the details of an orderly government default. more (PDF, 142 kB)