Je pense donc que, si le capitalisme a survécu, c’est précisément parce que nos systèmes sont des systèmes impurs : c’est cette impureté qui permet leur permanence. C’est cette impureté qu’il ne faut pas oublier lorsqu’on propose des réformes structurelles qui nous feraient...

There is a mounting discontent in Europe about the conduct of macroeconomic policy in the euro area and especially its policy mix, in the broad sense of the term – the combination of monetary policy, fiscal policy and structural reforms. If the proof of the pudding is in the eating, the weak...

The European "sovereignty paradox" may be summarized as follows: National States and/or the European Parliament, that are the instances in which resides the democratic legitimacy to implement policies and to react to events affecting the economy, are not endowed with the instruments to act or...

The ECB has a very clear idea of what European governments should do in the name of ‘sound’ economic management: balance the budget, reduce the role of the state in the economy by cutting public expenditures; increase the flexibility of labour markets by shrinking the welfare state (see for...

Cette année, les membres du Gn se réunissent au plus fort d’une période critique de l’Histoire contemporaine, du moins sur le plan économique et social : ils doivent affronter la plus grave crise des 80 dernières années. En paraphrasant Keynes on peut aller jusqu’à affirmer que le...

An assessment of the conduct of monetary policy in Europe must necessarily be made along two distinct and complementary lines. The first is a comparison with the policies followed in the past. The second line has to assess whether monetary policy is adapted to the new conditions that came into...

This paper argues that although the crisis may have emerged in the financial sector, its roots are much deeper and lie in a structural change in income distribution that has been going on for the past three decades. The widespread increase of inequality depressed aggregate demand and prompted...

Two stylized facts emerge as we observe the evolution of public finances in the past few years. The first is a general trend towards a deterioration of fiscal positions, mainly due to cyclical factors (the persistently deceiving growth performance of the Euro zone). The second, a remarkable lack...

A review of different theoretical models confirms that economists of opposing beliefs find themselves agreeing about the usefulness of employment subsidies. In a country with a relatively high wage floor, they reduce the cost of labour for firms. In countries where wage floors are low, subsidies...

This paper reviews the arguments in favour and against the “Stability and Growth Pact” signed by the countries of the Euro area. We find the theoretical debate to be inconclusive, as both externality and credibility arguments can be reversed to yield opposite, and equally plausible...