Six years after the start of the Great Recession, the economic and socialsituation in the euro area is still depressed and fragile as shown by key macroeco-nomic indicators. Growth will not exceed 0.8% in 2014 after two consecutiveyears of recession. The risk of deflation is increasing as...

Rising inequality is the elephant in the European room: everybody knows it is there and that it is an obvious problem, but no one wants to either discuss the problem or address it. Macroeconomic issues have taken the front seat, andinequality might be dropped in the conversation when it has...

Six ans après que l’économie mondiale soit entrée dans sa plus grave récession depuis la Seconde Guerre mondiale, la plupart des pays développés sont engagés dans une reprise bien établie. L’Europe, en particulier la zone euro, demeure une exception significative

Recent evidence has renewed views on the size of fiscal multipliers. It is notably emphasized that fiscal multipliers are higher in times of crisis. Starting from this literature, we develop a simple and tractable model to deal with the fiscal strategy led by euro area countries. Constrained by...

The European consolidation process has raised a few questions. The most frequent one has been how large are the costs of consolidation and has the Eurozone fiscal stance improved or achieved debt sustainability? Second, do these costs and sustainability depend on the composition (tax vs....

EMU countries have engaged in a consolidation of fiscal policies since 2011. This paper deals with the public debt and output dynamic consequences of this strategy. To this end, we develop a simple macroeconomic model of the Euro area, where fiscal multiplier is time-varying. Recent empirical...

Since 1999, France and Germany share the same money and have monetary policy interest rates determined commonly by the ECB. But this is far from being the end of the story (...).