Some thoughts on macroeconomic models

By: Paul De Grauwe, K.U. Leuven and CEPS

The limits of DSGE models as tools of analysis for central banks.

Germany's nuclear paranoia

By: Wolfgang Münchau

In my latest FT Deutschland column, I argue that the German Social Democrats are in a right mess over nuclear. This entry contains an English synopsis, and the original column in German.

The global euro needs stronger institutions

Institutions matter. They create their own agendas. Nobody knows this better than the European Commission itself.

Global adjustment will be long and painful

There are no multiple crises - there is only a single crisis, one of global macroeconomic adjustment. It is for that reasons that the finanical crisis is not yet over.

Let them eat cake...

Inflation, not global depression or a financial meltdown, is now the biggest problem facing the world economy. The core inflation measure, ever so popular among central bankers and academics, is a dangerously complecent metric that should be discarded.

Pessimism about the eurozone is misplaced

The euro area is stronger than the forecasts of the IMF believe. The crisis will eventually affect euro area growth, but not so much in 2008. There is also some evidence that the euro area is a touch less dependent on the US than previously.