Monetary Theory

This section was created as a follow-up to the controversial debate with Martin Hellwig. In his Handelsblatt article Hellwig explained why, in his view, the ECB is not postponing Greece’s insolvency by granting it Emergency Liquidity Assistance (ELA). Hellwig cited an article by Hans-Werner Sinn published in the Süddeutsche Zeitung, warning that ELA was facilitating capital flight. An article published by the Handelsblatt features a response to Hellwig from Clemens Fuest and Hans-Werner Sinn, who refute Hellwig‘s statement that the Community of States has nothing to lose from ELA because any income earned belonged to the Greek Central Bank anyway.

Casino Capitalism. How the Financial Crisis Came about and What Needs to Be Done Now, Oxford University Press: Oxford 2010, 400 p., (Revised and updated translation of Kasino-Kapitalismus), second edition (Paperback) 2012. Korean edition, Ecopia, Korea, 2010, 421 pages. To Amazon.




The German State Banks. Global Players in the International Financial Markets, (Übersetzung von Der Staat im Bankwesen...), Edward Elgar: Aldershot 1999, 140 S. To Amazon.




Risk Taking, Limited Liability, and the Banking Crisis, Selected Reprints, ifo Institut: München 2009, 200 p., mit einem Vorwort von Martin Hellwig.




"The ECB's Fiscal Policy"International Tax and Public Finance 25(6), June 2018, pp. 1404-1433; NBER Working Paper No. 24613, May 2018; CESifo Working Paper No. 7019, April 2018.

"Target loans, current account balances and capital flows: the ECB’s rescue facility" (together with Timo Wollmershäuser), International Tax and Public Finance 19 (4), 2012, pp. 468-508 (Download, 2.3 MB); (updated version of CESifo Working Paper No. 3500, June 2011, (Download, 1.3 MB), and NBER Working Paper 17626, November 2011); (Download, 931 KB).

"Eurowinners and Eurolosers: The Distribution of Seignorage Wealth in EMU“ (together with H. Feist), European Journal of Political Economy 13, 1997, pp. 665- 689; (Download, 1.08 MB); CESifo Working Paper No. 134, 1997; NBER Working Paper No. 6072, May 1999.

"The Non-neutrality of Inflation for International Capital Movements“, European Economic Review 35, 1991, pp. 1-22; (Download, 1.27 MB); NBER Working Paper No. 3219, August 1991.

"International Capital Movements, Flexible Exchange Rates and the IS-LM Model. A Comparison Between the Portfolio-Balance and the Flow Hypotheses“, Weltwirtschaftliches Archiv 119, 1983, pp. 36-63; (Download, 2.5 MB).

"The Euro, Eastern Europe, and Black Markets: The Currency Hypothesis" (together with F. Westermann), in: P. de Grauwe, ed., Exchange Rate Economics: Where Do We Stand?, MIT Press: Cambridge, Mass. 2005, pp. 207-238 (Download, 6 MB)NBER Working Paper No. 8352, 2001;CESifo Working Paper No. 493, 2001.

"Seignorage Wealth in the Eurosystem: Eurowinners and Eurolosers Revisited" (together with H. Feist), in: M. Köthenbürger, H.-W. Sinn und M. Widgren, eds., European Monetary Integration, MIT Press: Cambridge, Mass. 2004, pp. 121-136 (Download, 3 MB)CESifo Working Paper No. 353, November 2000.

"Editor’s Comments", in: H.-W. Sinn, ed., The European Balance of Payments Crisis, CESifo Forum 13, Special Issue January, 2012, pp. 104–105 (Download, 36 KB).

"Discussion of the paper “Monetary Policy, Labour Markets and Fiscal Policy” by Olivier Blanchard", in: The Deutsche Bundesbank, ed., Monetary Policy Over Fifty Years – Experiences and lessons, Routledge: Oxon and New York, 2009, pp. 142-148 (Download, 1.2 MB).

"Reply to the Comment: ("Currency in Circulation, The Cash Changeover and the Euro-Dollar Exchange Rate“ by F. Seitz and U. Bindseil, "Why Has the Euro Been Falling?“ by H.-W. Sinn and F. Westermann"ifo Studien 48, 2002, pp. 341-345; (Download, 1.44 MB).

"Inflation and Welfare, Comment on Robert Lucas", A. Leijonhufvud, ed., Papers of the IEA ConferenceMonetary Theory as a Basis for Monetary Policy, Palgrave: New York, 2001, pp. 132-142 (Download, 786 KB)CESifo Working Paper No. 179, 1999; NBER Working Paper No. 6979, February 1999.