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The crises of recent years have produced important innovations in European monetary and fiscal policy. The ECB has greatly expanded its purchases of government bonds and the EU is financing budgetary spending for the first time through the issuance of EU bonds. In addition, progress is being made in the harmonisation of corporate taxation.
Our research at ZEW helps to assess whether these European innovations have been successful and points out possible undesirable side effects. With its thematic focus on “European Monetary and Fiscal Policy”, the ZEW Monthly January 2023 provides an insight into our recent work on this topic.