Recent developments have put international tax issues at the top of the global policy agenda. The US government has proposed a switch from worldwide taxation of corporate profits to territorial taxation while the US Congress is considering an even more fundamental reform of the corporate tax...

Economic performance in the euro area has been very heterogeneous since 2010. Intra euro-area real exchange rates, however, have not adjusted very much during the last six years. This is arguably a major cause of the euro area's current woes. Yet, to date, there is no consensus as to why there...