Economic Theory, academic policy analysis and public policy design are becoming more interdependent. Hence, the demands for close interactions between the policy community and the research community have been rising significantly. This book assesses how recent economic thinking has advanced under these influences. Furthermore, it evaluates the important contribution economics can add to the design and evaluation of public policy, now more than ever before. The study is of interest to policy makers, policy analysts, researchers and students of economics at all levels. The authors, which include many of Germany's most eminent economists, draw on their wide experience in research and consultancy to present a coherent view of where European economic theory stands today and how it can play a role in the management of the economy of the new millennium.

1 Monetary Theory, Monetary Policy, and Financial Markets.- 2 Public Economics.- 3 Labor Economics.- 4 Institutions and Transformation - Possible Policy Implications of the New Institutional Economics.- 5 Antitrust and Regulation - The View of New Institutional Economics.- 6 Economics of Networks.- 7 Growth, Structural Change, and Employment.- 8 Economics of the Personal Distribution of Income.- 9 Game Theory and Experimental Economics.- 10 Summary and Recommendations.- List of Tables.- List of Figures.- List of Authors.