The European sovereign debt crisis has revealed severe flaws in the design of the internal market. Both, private and public borrowers had incentives for excessive borrowing, which have been created by deficits in the regulatory structure of financial markets. Capital requirements for banks were...

Die europäische Schuldenkrise hat zentrale Defizite des Binnenmarkts offengelegt. Regulatorische Defizite haben Anreize geschaffen, eine zu hohe Verschuldung einzugehen. Zwar wurde eine einheitliche Geldpolitik verfolgt, gleichzeitig aber die Kompetenzen für die Aufsicht und Restrukturierung...

Joseph A. Schumpeter is one of the most famous economists of the 20th century and the ’patron saint’ of the finance and growth literature. We have discovered that the prevailing literature has, however, misinterpreted Schumpeter, which leads to puzzling empirical results and difficulties in...