It is now a few years since the introduction of the common currency, and Europe is still experiencing high unemployment. The conventional logic attributes this problem to flaws in the labor market. In this paper, we look at the changes that occur if trade unions and the central bank have...

The traditional theory of economic policy of the Tinbergen-Theil-type has come under severe criticism: in the ontological setting of the "new classical macroeconomics" based on the rational expectations hypothesis, economic policy is ineffective or neutral with respect to real variables. In the...