The deepening of the debt crisis in the euro area is due to three systemic causes which national governments are not able to overcome on their own. First, being members of a monetary union euro states cannot dampen or even reverse the rise in public debt through devaluations. At the same time,...

This study contains four essays in the areas of fiscal-monetary policy coordination, public finance and optimal monetary institutions. Essay 1 analyses inflation targeting in an economy with decentralised monetary and fiscal policies and centralised wage setting.Depending on the specification of...

The deepening of the debt crisis in the euro area is due to three systemic causes which national governments are not able to overcome on their own. First, being members of a monetary union euro states cannot reverse the rise in public debt (caused by the financial crisis 2008) through...