Europäische Sanierung durch den europäischen Zusammenschluss? Mitteleuropa und Paneuropa

Ohne Zusammenfassung     

Efficiency of capital taxation in an open economy: tax competition versus tax exportation

Tax competition and tax exportation have contrary implications for the efficiency of capital taxation. We provide a simple condition for the dominance of either force, which depends on the mobility of foreign investment. We use this condition to evaluate the relative importance of both forces in the US and in the EU. This paper has benefitted substantially from the comments of the editor, Jay Wilson, and three anonymous referees.     

Internal devaluation in a monetary union

Reversing significant cumulative losses in competitiveness has emerged as a core challenge in some Eurozone countries. This brief note takes a closer look at one episode of successful internal devaluation, the experience of the new states following German reunification. The case suggests that substantial cumulative competitiveness gains are possible but require significant time. The case further points to relative productivity gains—and hence to structural reforms—as an important aspect of the adjustment process.     

Withdrawal legitimised? On the proposal by the constitutional Convention for the right of secession from the EU

Summary  All in all it can be stated that since the heterogeneity of the EU will increase considerably due to its enlargement and at the same time the trend towards centralisation and redistribution will be strengthened, secession and opting out will become important as constitutional arrangements for the EU. They are an instrument against stronger centralisation and redistribution mechnanisms. They make a contribution to the operationality of the subsidiarity principle. They form a counterweight to the domination of minorities by majority decisions. At the same time they facilitate the mechanisms for the endogenous determination of the optimal size of the EU and for the increasing of the efficiency of the EU institutions in the sense of federalism theory. Globalisation increasingly requires and enforces liberal institutions of integration. Every country should therefore have the choice of terminating its participation in a Community policy or even its membership of a club in a regulated fashion. Thus, the European Convention has made a trail-blazing proposal with the constitutional right of secession from the EU.     

Trends in the international licence trade

The term “international licence trade” signifies the worldwide buying and selling, across national frontiers, of technical and industrial licences. In contrast to the trade in goods, which involves the exchange of material goods, the transfer of licences concerns immaterial goods, i.e. legally protected industrial property rights (patents, registered or ornamental designs, copy rights) and unprotected technical knowledge and inventions (the so-called “know-how”).     

Fiscal Flexibility is No Sin When Policies are Failing

In a democracy, willingness to inflict economic pain is rarely a route to credibility. Investors will refuse to believe that the policies will survive. Once they reach that conclusion, credibility disappears. I learnt this in 1992. With the UK economy in recession, the credibility of the government’s commitment to membership of the exchange rate mechanism of the European Monetary System came     

We Still have That Sinking Feeling

It is nearly five years since financial turmoil broke upon an unsuspecting world, in August 2007. So how are crisis-stricken high income countries doing? Badly, is the only answer. Of the six largest high income economies (plus the eurozone), only those of the US and Germany are above previous peaks. Since the US was the epicentre of the early shocks, its recovery has been relatively good. Yet none of these countries can be happy with its performance. While US gross domestic product has     

Credit derivatives and loan pricing

This paper examines the relation between the new markets for credit default swaps (CDS) and banks’ pricing of syndicated loans to US corporates. We find that changes in CDS spreads have a significantly positive coefficient and explain about 25% of subsequent monthly changes in aggregate loan spreads during 2000–2005. Moreover, when compared to traditional explanatory factors, they turn out to be the dominant determinant of loan spreads. In particular, they explain loan rates much better than same rated bonds. This suggests that CDS prices contain, beyond general credit risk, to a substantial extent information relevant for bank lending. We also find that, over time, new information from CDS markets is faster incorporated into loans, but information from other markets is not. Overall, our results indicate that the markets for CDS have gained an important role for banks.