Fiscal and monetary policy

This is the first annual report by the European Economic Advisory group at CESifo that brings together economists from different European countries with the goal of contributing analyses and proposals to the process of policy making and reform. Each year, the report presents a selection of emerging policy issues. This report is in seven sections, each focused on a key policy issue in the euro area. After assessing the growth prospects for the current year, the 2002 report discusses the external value of the euro, the appropriate fiscal and monetary policy mix, price and inflation divergences across member states, factors enhancing or hampering European growth in the long run, an employment-friendly reform of welfare, and a reform of the Common Agricultural Policy.