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.

Spanish and Italian car sales collapse in August

More bad news for the euro area economy with dramatic falls in car sales in Spain and Italy; Francois Fillon revises French growth forecast for 2008 downwards, as budget deficit threatens to exceed Maastricht limit; in the UK, meanwhile, the foreign exchange market got spooked when a finance minister told the truth.

Some thoughts about Berlusconi

By: Wolfgang Münchau

Berlusconi will almost certainly win the elections, but that does not necessarily mean he will be the next PM.

Good news from Italy

By: Wolfgang Münchau

Paradoxically, the current crisis may turn out to be the best thing that has happened to the country in years.

What actually happened in Berlin

By: Wolfgang Munchau

The German government is all over the place after hearing about French plans for a euro area summit.

The case for adapting the policy framework in the euro area

By: Jean Pisani-Ferry, André Sapir and Alan Ahearne

Financial market turbulence, an appreciating euro, inflation pressures and a slowing economy pose serious challenges for the euro area. At a time when euro area member states increasingly pursue national strategies, there is growing doubt about the euro area’s ability to meet these challenges. A report by the think tank Bruegel published last week provides a blueprint of how to improve the policy making system. Eurointelligence has asked three of the authors – all regular contributors to our EMU Monitor - to outline the main issues. Their main message is that the maintenance of a learning mindset and a willingness to adapt the policy framework in light of the experience gained is crucial to the long term success of the euro.