Herbert Giersch's contribution to economics has ranged widely over international economics, European integration and the economics of entrepreneurship. This book presents in one volume a selection of some of his most important essays and papers. It encompasses the gradual evolution of his work from its beginnings to his most recent contributions to the debate on the future of the European Economic Community. It contains some of his most significant work during the last 30 years and includes material that is not widely available. It will be an essential reference point for all economists concerned with entrepreneurship, the world economy and Europe.

This book presents the papers, the comments, and summaries of the discussions that the conference started off with the pros and cons of rules for the conduct of monetary and fiscal policy. It provides argument of opponents that rules had failed due to drastic changes in the velocity of circulation.

This volume is the outcome of the 19th Kiel Week Conference held at the Institute of World Economics, 22-24 June 1988. It contains the revised versions of the papers and comments submitted after discussion. As in previous years, the purpose of the conference was to explore a subject of relevance for economic policy. This time, the focus was on serv

This book provides a reassessment of the government's role in the provision of social insurance. It shows how President Reagan's proposal for a transition to block grants is designed to lay the responsibility for financing the spending in the hands of the same political decision-makers.

This book presents the 1986 Kiel Conference papers together with written comments. The papers have two unifying themes which are expounded in a variety of ways-the nature and causes of restrictive trade policies, and the consequences of those policies.

International trade policy is facing a cross-roads. This is creating uncertainty, impairing world economic growth. Unless a policy of more open markets is pursued, protectionism may well turn into a self-perpetuating and cumulative process. This is why the 1986 Kiel Conference was devoted to Free Trade in the World Economy: Towards an Opening of Markets. We felt that such a conference would help to stimulate policy discussion preceding the Uruguay Round under the auspices of the GATT and the moves within the European Community towards completing a common internal market by 1992.

The 1997 Symposium of the Egon-Sohmen-Foundation, which gave rise to this book, took place in the United States, on the East Coast between New Y C)rk and New Haven, more precisely in Stamford (Conn.). The original choice had been a place close to Yale University, where Egon Sohmen taught economics from 1958 to 1960, subsequent to his period at MIT. But the hotel in New Haven was closed down by a new owner-to pass through a process of creative destruction. Change of ownership-on a large scale and as a transition from public to private hands-had been the topic of the preceding Egon Sohmen-Symposium (in Budapest in 1996) published under the head ing: Privatization at the End of the Century (Springer-Verlag, 1997). Yet mere change of ownership, some of us at the Foundation felt in subsequent months, was too narrow a focus to properly deal with the movement under consideration: a transition of ownership together with a general move towards a competitive market system charac terized by global openness, uncertainty, decentralized risk-bearing, and the increasing importance of information and innovation."

In 1990, the countries of Central and Eastern Europe began or accelerated their transition to a market economy. This book addresses among others the following questions: (I) What are the fundamental causes of the collapse of the Soviet-type economic systems? (II) What major steps could be taken to make the transition process to a market economy irreversible and less painful? (III) What can be learned from West Germany's outstandingly successful postwar economic reforms? (IV) Is the issue of gradualism versus shock therapy still relevant? (V) If macroeconomic stability is a precondition, what is the role of privatization, deregulation and trade liberalization? (VI) What is the optimal sequence of steps in privatization, deregulation, liberalization and currency convertibility? (VII) How quickly may privatization be achieved? (VIII) Is the USSR really a special case and, if so, in what respects and for what fundamental reasons? (IX) How long in the transition period may the initial phase of disorder, chaos and decline last? (X) What can be learned from the experiences gathered so far in the major ex-communist countries?

On June 1, 1990, Egon Sohmen would have reached the age of 60 had he not suffered from a fatal illness. It demanded his death at the early age of 46. If he were still with us, he would playa prominent role in the current debate on monetary arrangements and on allocation theory, perhaps in cluding environmental issues and urban economics. His contributions are well remembered by his colleagues and friends, by his former students, and by many in the economics profession on both sides of the Atlantic. In extrapolating his great achievements as a scholar and teacher beyond the time of his death, one is inclined to suppose that Egon Sohmen's name would figure high on many a list of candidates for honors and awards in the field of international economics. For the reconstruction of economics in the German language area Egon Sohmen was invaluable. Born in Linz (Austria), he studied in Vienna at the Business School (Hochschule fUr Welthandel, now Wirtscha tsuniversitiit), then went to the US as a Fulbright scholar (1953), returned to Europe to take his doctorate in Tiibingen, Germany, (1954) and crossed the Atlantic again to teach at MIT (1955-58) where he obtained a Ph. D. (1958) under Charlie Kindleberger. He might have stayed permanently in the US, con tinuing a career that he started as Assistant Professor at Yale University (1958-61), if the US visa provisions had been applied in a more liberal fashion."

This is the flfth volume in the series of books emanating from the activities of the Egon-Sohmen-Foundation. The Foundation was established by Helmut Sohmen of Hong Kong in memory of his late brother, Egon Sohmen (1930-1977), who was an interna- tional economist, highly respected on both sides of the Atlantic. The conference topics in previous years were "Towards a Mar- ket Economy in Central and Eastern Europe," "Money, Trade, and Competition," "Economic Progress and Environmental Con- cerns," and "Economic Aspects of International Migration." These are also the titles of the respective conference volumes (edited by Herbert Giersch and published by Springer). The topic of the 1993 conference evolved from a suggestion made by Regine Sohmen, Egon's widow, who reported about her husband's increasing interest in urban economics during the 19708, when he was teaching at the University of Heidelberg and became concerned with the romantic town's congestion problem. The idea struck me as important also from the angle of trade and economic growth that had attracted Egon Sohmen's interest in the 1960s, notably when we were both lecturing at the University ofthe Saar. This angle can be briefly described as follows.

At the end of the century, privatization has become a worldwide phenomenon. It is taking place in what was once called the first, the second, and the third world. The volume mirrors this expansion of privatization. In Part I on the economics of privatization, historical, theoretical, and politico-economic issues are covered. In Part II country studies are presented for China, the Czech Republic, Eastern Germany, Estonia, Hungary, Poland, Russia and the United Kingdom. In Part III a broader view on privatization is taken by including deregulation and the private provision of public goods and services.The book contains contributions by D.Bos, T.Eggertsson, R.P.Heinrich, P. Jasinski, H.Klodt, B.Krug, D.Lal, S.C.Littlechild, M. Mejstrik, P.Mihalyi, P.Plane, J.-J.Rosa, K.M.Schmidt and M.Schnitzer, and U.Siegmund.

Following the five books listed above on an earlier page, the Egon Sohmen-Foundation herewith submits its sixth volume. Once again, it is a collection of academic papers that were discussed at a symposium sponsored by the Foundation and subsequently revised. Readers not familiar with the Foundation may be interested to know that it was established in 1987 by Helmut Sohmen of Hong Kong in memory of his late brother, Egon Sohmen (1930-1977). Egon Soh men was an international economist highly respected in North America and in Europe, notably for his work on flexible exchange rates and on the economics of allocation and competition. Born in Linz (Austria) and educated as an economist in Vienna, Tiibingen, and Cambridge, Mass., Egon Sohmen held teaching posts in several places (M.I.T., Yale, Frankfurt, Saarbriicken, Minnesota, and Heidelberg). As an active participant in numerous international con ferences and workshops, he truly belonged to the international research community of his time and age cohort. His lasting reputation greatly helped me to convene the active participants of this symposium."

This book is the sequel to Fighting Europe's Unemployment in the 1990s, the collection of papers presented at the Salzburg Symposium of the Egon-Sohmen-Foundation in 1994. Though the problem of un employment was urgent already then, it has not found a practical solution in the meantime, and even intellectually it remains somewhat of a mystery. A clue is offered by the contrast with the United States: they have the working poor; we, on the old continent, have the welfare recipients. This brings the relationship between unemployment and the welfare state to the fore. On closer inspection, however, the matter appears to be much more complicated than the transatlantic contrast suggests. Consider only that the welfare state and what is called "social policy" have a long tradition in Europe. They obviously did not pre vent or noticeably hamper the decline in unemployment in the 1950s and the emergence of full employment in the 1960s. This leaves room for various conjectures. Does the welfare state matter only after a long time lag or after it has grown too fast or too much beyond a critical size? Is it the welfare state per se that is harmful to employment or do its harmful effects arise only under certain conditions, e. g."

The Fading Miracle provides a lucid account of economic policy in West Germany from the late 1940s up to the present. First published in hardback in 1992, this paperback edition has been updated to include events since then. The authors describe and evaluate the major policy controversies and decisions, and place particular emphasis on the characteristically German institutions of policy counselling and their role in policy formation. The book will be of interest to students and teachers of economics, and to all those with an interest in the development of the greatest economic power in Europe.

List of Participants - Preface - PART 1 THE RELEVANCE OF ECONOMIC INCENTIVES FOR ECONOMIC DEVELOPMENT - Prices, Incentives and Economic Growth; B.Balassa - Microeconomic Incentives and Macroeconomic Decline; M.Olson - Social Insurance: Incentives and Disincentives to Save and to Work; M.Janssen - Incentives and Disincentives: International Migration; J.N.Bhagwati - Incentives for the Homogenization of Time Use; D.S.Hamermesh - Incentives for Entrepreneurship and Supporting Institutions; R.R.Nelson - The Incentive Limits of Firms: A Comparative Institutional Assessment of Bureaucracy; O.E.Williamson - PART 2 COUNTRY EXPERIENCE WITH RESTRUCTURING INCENTIVES - Incentives in the Soviet Economy; T.S.Kahchaturov - Restructuring Incentives in Hungary; B.Csik s-Nagy - Incentives in the United Kingdom; P.Minford - Economic Reforms in Chile, 1973-1981; A.Saieh and L.A.Sjaastad - Restructuring Incentives in the People's Republic of China; A.Gutowski and R.Merklein - From Bankruptcy to Revival: The Turkish Experience with Restructuring Economic Incentives, 1980-1984; E.G nensay - Obstacles to Changing the Incentive System: The Case of the Federal Republic of Germany; H.Bonus - PART 3 INCENTIVES IN THE INTERNATIONAL ECONOMY - Incentives and Disincentives for Foreign Direct Investment in Less Developed Countries; V.N.Balasubramanyan - Rent-Seeking and Trade Policy: An Industry Approach; R.E.Baldwin - The Function of Governments and Intergovernmental Organizations in the International Resource Transfer: The Case of the World Bank; B.S.Frey - PART 4 CONCLUDING APPRAISALS - Incentives and Growth: An Appraisal; K.J.Arrow - Incentives and Growth: A Summary Appraisal; J.B.Donges - Index

In diesem zweiten Band der "Allgemeinen Wirtschaftspolitik" liefert Herbert Giersch ein Kompendium des konjunkturpolitischen Wissens seiner Zeit, das noch heute fasziniert. Es vereinigt die Erkenntnisse volkswirtschaftlicher Theorie und wirtschaftspolitischer Praxis, die der Autor in eineinhalb Jahrzehnten der universitaren Lehre und Forschung sowie der Tatigkeit als akademischer Berater fur sich erschlossen und weitergegeben hat. Damit umfasst es ein riesiges Spektrum von Themen, die in den sechziger und siebziger Jahren auf der Tagesordnung standen. Der Zusammenbruch des Bretton-Woods-Systems und der erste OElpreisschock lagen bei Erstveroeffentlichung dieses Bandes gerade einmal vier Jahre zuruck. Damit endete die Phase dynamischen industriegetriebenen Wachstums, die Deutschland nach Auslaufen des Wirtschaftswunders Vollbeschaftigung bei starker Zuwanderung beschert hatte. Das Buch enthalt alles, was Giersch vor diesem Hintergrund in der Auseinandersetzung mit Denkrichtungen vom Keynesianismus uber die Neoklassik bis zum Monetarismus zu sagen hat.

In diesem ersten Band der "Allgemeinen Wirtschaftspolitik" vermittelt Herbert Giersch ein bis heute essenzielles Stuck staatsburgerlichen Wissens. Zugleich stellt dieses Buch ein faszinierendes Dokument der wirtschaftspolitischen und intellektuellen Zeitgeschichte dar. Tiefe oekonomische, sozialphilosophische und wissenschaftstheoretische Erkenntnis schlagt sich darin nieder. Der Autor behandelt Wesen, Ziele, Konflikte, Konzeptionen und Institutionen der Wirtschaftspolitik, den Beitrag der OEkonomik und insbesondere der Wohlfahrtstheorie. Philosophische, politische und oekonomische Perspektive vereinend, widmet er auch den bis heute pragenden Denkgebauden der Wirtschaftspolitik viel Raum, vom Merkantilismus uber den klassischen Liberalismus und den Marxismus bis hin zum Neoliberalismus und zur sozialen Marktwirtschaft. Daruber hinaus schildert er den Weg zur praktischen Umsetzung wirtschaftspolitischer Vorschlage innerhalb der Willensbildungsprozesse pluralistischer demokratischer Gesellschaften.

Der AniaB zu dieser Festschrift fiir Professor Dr. Dr. h.c. mult. Herbert Giersch ist iiber den Wunsch hinaus, zu ehren, ein besonderer: Fiir Herbert Giersch beginnt mit seiner Emeritierung durch die Wirtschafts-und Sozialwissenschaftliche Fakultat der Universitat Kiel und seinem Ausscheiden aus der Leitung des Instituts fiir Weltwirtschaft ein neuer Le- bensabschnitt. DaB dies ihn nicht zum Ausruhen veranlassen wird, diirfte nicht nur sicher, sondern auch wiinschenswert sein. Herbert Gierschs bisherige wissenschaftliche Arbeit in Forschung und Lehre einzuordnen und zu bewerten, kann nicht die Aufgabe der Verfasser sein. DafUr standen und stehen sie ihm als Mitarbeiter oder gar als Schiiler zu nahe. Deshalb miissen an anderer Stelle dieses Buches einige biographische und bibliographische Anmerkungen geniigen. Der vorliegende Band enthalt Arbeiten zu einer Reihe von Sachgebieten der Wirtschafts- politik, denen auch Herbert Gierschs Interesse gilt. Es wurde zwar nicht versucht, ein sein breites wissenschaftliches Betatigungsfeld abdeckendes, in sich geschlossenes Buch zu- sammenzustellen. Doch haben, wenn auch in unterschiedlichem MaBe, aile Beitrage ein Problem mit zum Gegenstand, das zum Titel dieses Buches fUhrte und das Herbert Giersch immer wieder herausfordert: die nur zu haufige, wenn nicht charakteristische Diskrepanz zwischen dem wirtschaftspolitischen Handeln, welches Okonomen nach den erklarten Zielen und ordnungspolitischen Prinzipien aufgrund des okonomischen Kenntnisstandes als sachgerecht oder vernunftgemaB bezeichnen wiirden, und dem Handeln, welches der politische WillensbildungsprozeB tatsachlich hervorbringt.

Zunachst bedarf dieses Buch einer Entschuldigung nach dem Motto: Spat kommt es, doch es kommt. Auf sie hat Anspruch, wer im Vertrauen auf ein friiheres Vorwort des Verfassers einen zweiten Band zur Allgemeinen Wirt- schaftspolitik erwarten durfte. Die Verspatung ist die Folge einer abenteuer- lichen Entscheidung, die der Verfasser vor einem Dutzend Jahren getroffen hat, als er die Berufung in den damals gegrundeten "Sachverstandigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung" annahm. Da ihn das Los zur Mitarbeit an sechs Jahresgutachten und sein Mangel an Gelassenheit immer wieder zu konjunkturpolitischen AuBerungen auBer der Reihe verur- teilte, blieb fur dieses Buch leider lange nicht viel Zeit ubrig. Hieran hat sich auch in den sechs Kieler Jahren danach kaum etwas geandert. Insgesamt waren es aber ein Dutzend Lern- und Lehrjahre. Ohne das Lernen in der wirtschaftspolitischen Auseinandersetzung ware das Buch formaler und inhaltsleerer und ohne das gleichzeitige Lehren konziser und unverstandlicher, insgesamt also wohl moderner, ausgefallen. Gelegentliche Wiederholungen, die den Gesamtzusammenhang verdeutlichen, wurden nicht durch Verweise er- setzt, urn der Neigung zum Scheuklappendenken keinen Vorschub zu leisten. Vielleicht kann das Buch so auch etwas uber den Hochschulbereich hinaus in die wirtschaftspolitische Diskussion und Praxis hineinwirken.