In late 2008 a consensus was reached amongst global policymakers that fiscal stimulus was required to counteract the effects of the Great Recession, a view dubbed as the New Fiscalism. Pragmatism triumphed over the stipulations of the New Consensus Macroeconomics, which viewed discretionary...

This paper reviews the current debate on the causes and remedies of the recent European sovereign debt crisis. The survey starts from the observation that different views seem to share the following point: the non-optimality of the Eurozone. The European Institutions have identified two main...