<italic>Abstract</italic>: Although the IS/LM-AS/AD model is still the central tool of macroeconomic teaching in most macroeconomic textbooks, it has been criticized by several economists. Colander (1995) demonstrated that the framework is logically inconsistent, Romer (2000) showed that it is unable to deal...

For the open economy, the workhorse model in intermediate textbooks still is the Mundell-Fleming model, which basically extends the investment and savings, liquidity preference and money supply (IS-LM) model to open economy problems. The authors present a simple New Keynesian model of the open...

Although there seems to be a broad consensus among economists that purely floating or completely fixed exchange rates (the so-called corner solutions) are the only viable alternatives of exchange rate management, many countries do not behave according to this paradigm and adopt a strategy within...

Die Hartz-IV-Reformen werden immer wieder als deutsches Erfolgsmodell zur Senkung der Arbeitslosigkeit angeführt. Ist es daher sinnvoll, anderen Ländern der Währungsunion zu empfehlen, ähnliche Reformen durchzuführen? Peter Bofinger verneint das entschieden, da der Rückgang der...