Surprisingly, left governments adopted more conservative fiscal policies than right governments in recent economic crises. Governments did not choose these policies freely; rather, the financial markets imposed them. Nonetheless, argues Damian Raess, they appear to have dire electoral consequences: left-leaning voters are increasingly voting with their feet Read more
The CDU is facing its first post-Merkel electoral campaign, and the SPD is struggling to gain more than a 15% vote share. The Greens, meanwhile, are the second largest party in Germany. The impact of their results on the new German government may be the Eurozoneâs most important political development of 2021. Gabriele Beretta argues that this could also have dramatic macroeconomic consequences for the Euro Area Read more
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