This paper critically discusses three proposals to overcome the zero interest bound, which have recently been proposed by prominent economists. We trace back the historical origins of these proposals, reaching back to the late 19th century, and comment on their theoretical and practical...

The reasons for the current financial crisis are analysed and a proposal for financing a bad bank is made. In particular, it is proposed to give the banks in trouble government zero bonds rather than cash in exchange for their toxic assets. The term of the zero bonds is determined individually...

The paper argues that, from a dynamic efficiency perspective, intersections of factor price frontiers are irrelevant to the choice of techniques. Because every change in technique involves a temporary loss or gain in both profit and per capita consumption within the transition period, its...

An optimal taxation approach is employed to compare a proportional income tax with a death tax within a simple lifetime-cycle-model. The impact of both taxes is discussed concerning consumption, leisure, savings, and inheritance. It is shown that the income tax generally leaves the tax payer...

A general model of intertemporal consumption choice is developed, following Samuelson`s 1958 OLG-approach. The efficiency properties of the model are discussed with and without the introduction of durable goods, of productive capital, and fiat money. It is shown that the criterion of golden rule...

It has repeatedly been proposed to reduce the conventional pay-as-you-go-systems to a base level, leaving advanced retirement provision for private funded systems. However, pay-as-you-go-systems are, in a sense, one way roads, with no available Pareto efficient way out. The paper discusses a...

The so-called purchasing power argument of wages (PPA), suggesting that rising wages could increase employment instead of reducing it, is examined within a general theoretical framework. While the demand side is modelled by means of a path-dependent Keynesian model with a Kaldorian saving...

A simple OLG-model is developed, where housing is the only consumption good and saving is either in terms of financial assets or in terms of owner-occupied or rented dwellings. It is shown that, while without taxes optimal consumption plans and maximum utility are the same for both the tenant...

A model is developed which explains deep recessions like the recent crisis by a lack of economic confidence, going along with a high liquidity preference of both private households and the private bynking system. Thus the paper argues for a new form of Keynesian policy, which rests on monetary...

It is argued that the stronger member states of the European Monetary Union should find their way out of the Euro in order to avoid being dragged into a disastrous course of inflation and over-indebtedness by the weaker members. A sudden exit would presumably cause financial turmoil as well as...