The tenth issue of Economic Policy, jointly sponsored by CEPR, the Maison des Sciences de l'Homme and the Ecole des Hautes Etudes en Sciences Sociales, appeared in April. This is the second of two special issues of the journal devoted to 1992.

Damien Neven argues that the main beneficiaries of the internal market will be the Southern European countries, who will benefit both from a better exploitation of their comparative advantage in labour-intensive industries and from the gains in scale economies which have already been substantially exploited in Northern Europe.
Marco Pagano and Ailsa Roell compare the theoretical and practical merits of various market operations currently being introduced into European stock markets, and assess their implications for the relative competitiveness of European financial markets.
Barry Eichengreen considers the case for European monetary union in the light of the US experience of fiscal federalism, which has no EC-wide counterpart yet, although its functions seem desirable for a monetary union. US experience also suggests that a currency union creates pressures for fiscal harmonization. There is still a potentially serious problem of depressed regions.
Julian Franks and Colin Mayer compare the levels of takeover activity in France, Germany and the UK. They assess both the effectiveness of a high level of takeover activity as a means of correcting managerial failure and the danger that it may reduce the commitment of owners to the long-term interests of their managers and employees.
Samuel Bentolila and Olivier Blanchard argue that the high levels of Spanish unemployment in recent years are attributable in part to `hysterisis' effects, whereby high unemployment led to changes in the labour market, and hence to higher equilibrium unemployment. They infer that policies designed to undo some of the endogenous changes in the labour market would both ease and hasten the reduction of unemployment to levels in line with the other EC member countries.
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