Restoring Europe's Prosperity is the first annual produced by the Centre for European Policy Studies (CEPS), an independent research institution which focuses on the major medium- and long-term issues facing the European community and Western Europe both internally and internationally.The most important economic problems of the past five years have concerned unemployment, economic growth, fiscal deficits, and the value of the U.S. dollar. It is clear that past and present economic policies have not effectively addressed these problems. This CEPS annual selects the best work of the Centre's Macroeconomic Policy Group; a rotating group of distinguished economists who are studying macroeconomic conditions and trends, the implications of the economic policies being pursued, and possible alternative policies.The essays and their authors are: Macroeconomic Prospects and Policies for the European Community, by R. Dornbusch, G. Basevi, O. Blanchard, W Buiter, and R. Layard. Europe: The Case for Unsustainable Growth, by R. Layard, G. Basevi, O. Blanchard, W. Buiter, and R. Dornbusch. Employment and Growth in Europe: A Two-Handed Approach, by O. Blanchard, R. Dornbusch, J. Dreze, H. Giersch, R. Layard, and M. Monti. Public Debt and Fiscal Responsibility, by O. Blanchard, R. Dornbusch, and W. Buiter. US Deficits, the Dollar, and Europe, by O. Blanchard and R. Dornbusch.Olivier Blanchard is Professor of Economics at MIT Rudiger Dornbusch, Ford International Professor of Economics, is also at MIT. Richard Layard, Professor of Economics, is Head of the Centre for Labour Economics at the London School of Economics.