EconPol Working Paper Series

Finnish VATT economists Jarkko Harju, Ilpo Kauppinen and Olli Ropponen have studied the interesting effects of an interest barrier that was introduced in Finland to restrict the profit-shifting opportunities of multinational enterprises (MNEs). They employed full population data of Finnish, Swedish and Danish MNEs and a difference-indifferences methodology, where Swedish and Danish MNEs serve as a control group.

The EMU has been founded on the exclusive national responsibility doctrine, except for monetary sovereignty devoted to a single bank. Italian economist Roberto Tamborini, Università di Trento, speaks out on why the strong interdependent linkages among the Partner countries impair the national responsibility notion and make the country-by-country approach of the EMU policicies so dramatically harmful.

Jean Tirole, Nobel Memorial Prize Winner in Economic Sciences, and top economist Emmanuel Farhi provide their theory of the feedback loop that allows for both domestic bailouts of the banking system and sovereign debt forgiveness by international creditors or solidarity by other countries.