This book is a critical review of current fiscal and monetary policy in Europe and presents results of both empirical research and a discussion of the theoretical framework behind the policy of the European Central Bank and the Stability and Growth Pact.

Contents:

Introduction

PART I: MONETARY POLICY, FISCAL POLICY AND THE STABILITY AND GROWTH PACT
1. The Brussels–Frankfurt Consensus: An Answer to the Wrong Question
William Mitchell and Joan Muysken

2. Whither Stability Pact? An Assessment of Reform Proposals
Paola Monperrus-Veroni and Francesco Saraceno

3. Alternatives for the Policy Framework of the Euro
Philip Arestis and Malcolm Sawyer

4. What Drives ECB Monetary Policy?
Clemens J.M. Kool

5. Interest Rates, Debt, Counter-Cyclical Policy and Monetary Sovereignty
Jan Kregel

PART II: LABOUR MARKETS AND LABOUR MARKET POLICIES
6. Institutions and the Labour Market: Examining the Benefits
Tom van Veen

7. Institutions and Unemployment in OECD Countries: A Panel Data Analysis
Lucio Baccaro and Diego Rei

8. The Institutional Determinants of Labour Market Performance: Comparing the Anglo-Saxon Model and a European-Style Alternative
Henri de Groot, Richard Nahuis and Paul Tang

9. Enhancing Productivity: Social Protection as Investment Policy
Chris de Neubourg and Julie Castonguay

10. Labour Market Adjustments and Macroeconomic Performance
Anna Batyra and Henri Sneessens