Abstract:

Policymakers in the EU member states are currently shaping rescue packages to prevent the fi nancial crisis hitting their economies with unmitigated force. Each government is responding to the emerging problems with a country-specifi c set of measures. Given the global nature of the crisis, would coordinated action at the European level not be a better approach? Was the German government – much-criticised for its initial reluctance to adopt massive fi scal stimulation measures – right after all to exploit the option value of waiting in a situation of high uncertainty?