IDEAS home Printed from
   My bibliography  Save this article



  • Hans-Werner Sinn


In its 11th annual Report on the European Economy, the European Economic Advisory Group at CESifo contributes to public debate over the crisis by analysing intra-European balance-of-payments imbalances as measured by the Target accounts. It discusses the difficult trade-off between short- and long-term risks faced by policymakers, and argues that the euro area cannot avoid a painful process of internal price level realignment to compensate for the missing possibility of external exchange rate adjustments. The Group advocates short-term liquidity help but rules out Eurobonds and other measures undermining investor liability, which would lead the euro area back to a system of excessive capital flows and current account imbalances. The Group reiterates its recommendation to policymakers to introduce the three-stage-crisis procedure described in last year’s report.

Suggested Citation

  • Hans-Werner Sinn, 2012. "Foreword," EEAG Report on the European Economy, CESifo Group Munich, vol. 0, pages 01-02, February.
  • Handle: RePEc:ces:eeagre:v::y:2012:i::p:01-02

    Download full text from publisher

    File URL:
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    1. Jeroen Klomp & Jakob de Haan, 2010. "Inflation And Central Bank Independence: A Meta-Regression Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 24(4), pages 593-621, September.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ces:eeagre:v::y:2012:i::p:01-02. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Klaus Wohlrabe). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.