Future of fiscal federalism (Tanzi x Vaubel)

Vito Tanzi (vitotanzi@msn.com) sent us his reply (article published at the European Journal of Political Economy, Oct./2008) to Roland Vaubel in discussion on “The future of fiscal federalism and the need for global government”. He concludes with this question: “… if governments are neeeded for countries … is a global government, or at least a proxy for it, needed for the global economy that faces the existence of public goods and externalities that cross frontiers and at times become global? Or do we think that governments are no longer needed? Or always make matters worse?” (PDF in English)