Ongoing international financial integration and the introduction of the euro significantly improved borrowing conditions in the Euro-periphery countries and boosted their aggregate demand. Much of the growing private and public indebtedness financed ...

The discussion about Greece has intensified in recent months. Greece is running out of time in its search for fresh cash to serve its external debt and to pay wages to public sector employees.

Greece and her creditors seem to be engaged in a game of chicken: Either side expects the other to yield at the last moment before the default of the Greek government.

The mandate of the ECB was given on the basis of an erroneous blueprint for EMU. We also believe that the ECB has shortened the mandate and interpreted it in a problematic way.

Even if there were a glut of savings and the economy stagnated, the lending rate would by no means fall to or below zero without manipulation by the central banks. The consequence would instead be price deflation. But because this could cause our cre ...

For a long time Japan was regarded as a special economic case, which at best interested experts with a soft spot for the study of financial bubbles. This has changed since the global financial crisis at the latest.