Discusses the idea of a two‐speed Europe in the light of the recent open letter from the governing parties in Germany. This letter raised the ideal of a two‐speed Europe from a de facto configuration of the European economies to an explicit strategy for European integration. Puts forward the...

Most of the literature on the independence of the Central Bank assumes only one policy instrument is available: monetary policy. If we introduce fiscal policy as well, when preferences may differ among policy-makers, the situation is radically different. In this case fiscal policy will weaken...