The Managing Editors of Economic Policy: Tullio Jappelli is CSEF Director and Professor of Economics at the University of Naples Federico II. Philip Lane is Professor of International Macroeconomics at Trinity College Dublin. Philippe Martin is Professor at the Universite Paris-1 Pantheon Sorbonne and CERASENPC and a Research Fellow at CEPR. Jan van Ours is Professor of Economics at Tilburg University and Professorial Fellow at Melbourne University. The Senior Editors of Economic Policy: Georges de Menil works at the Delta Ens, France. Richard Portes lectures in the Department of Economics, London Business School. Hans-Werner Sinn is based at the Centre for Economic Studies, University of Munich.

• Editors' introduction 1. Monetary policy and financial imbalances: facts and fiction (Katrin Assenmacher-Wesche and Stefan Gerlach) 2. Disability, capacity for work and the business cycle: an international perspective (Hugo Benitez-Silva, Richard Disney and Sergi Jimenez-Martin) 3. Corporate tax harmonization in the EU (Leon Bettendorf, Michael P. Devereux, Albert van der Horst, Simon Loretz and Ruud A. de Mooij) Index.