Why did the Eurozone crisis prove to be so difficult to resolve? Why was it resolved in a manner in which some countries bore a much larger share of the pain than other countries? Why did no country leave the Eurozone rather than implement unprecedented austerity? Who supported and who opposed...

Germany’s large current account surplus has been widely criticized, especially against the backdrop of the role of macroeconomic imbalances in the Eurozone crisis. We argue that Germany’s resistance to reduce its massive current account surplus through an expansionary policy at home is...

Using panel data for 68 countries over the period 1975-2002 this paper examines how IMF programs, disbursed loans, and compliance with conditionality affect the risk of currency crises and the outcome of such crises. Specifically, we investigate whether countries with previous IMF intervention...

Using panel data for 68 countries over the period 1975-2002 this paper examines how IMF programs, disbursed loans, and compliance with conditionality affect the risk of currency crises and the outcome of such crises. Specifically, we investigate whether countries with previous IMF intervention...

Why are some policymakers able to adjust their policies in response to deteriorating economic conditions, while other policymakers delay adjustment as long as possible, a policy path that typically ends with an economic crisis? This paper examines this question by focusing on the area of...

We argue that this context of post-industrialism and welfare state restructuring affects the values of “labor” with regard to income redistribution and social insurance. Welfare values, i.e. stable preferences with regard to a desired outcome in terms of the distribution of risk and wealth...

How does national crisis management affect the electoral fortunes of coalition governments? Drawing on micro-level data from just before the 2009 federal elections in Germany, this paper investigates how voters' evaluation of specific policies against the global financial crisis affected...

Exchange rate policy is influenced by numerous political factors, including the preferences of industries, policymakers, political parties as well as institutional arrangements, such as democracy, elections, the electoral system, the number of veto players and central bank independence. However,...

This chapter argues that the interests of private actors, such as individuals, firms, and financial market participants, play an important role for policymakers' exchange-rate policy decisions, both regarding the level and the stability of the national currency. These interests are shaped by a...

The global financial and economic crisis and the euro-crisis in particular, which was grabbing headlines at the time of writing, demonstrate unmistakably that external imbalances can pose significant fiscal challenges. Although the nature of these challenges differs between deficit and surplus...