After the Great Recession and the Euro Crisis, it is time to reconsider the design of fiscal and monetary policies in Europe and worldwide. Can fiscal policy still fulfil the three classical functions (due to Musgrave) of allocation, distribution, and stabilization? Is monetary policy still effective in influencing output, employment and the price level in a predictable way? What kind of institutional environment is adequate to allow well designed fiscal and monetary policies to fulfill their tasks in an appropriate way? In the Sessions "Fiscal and Monetary Policies I and II", we aim at showing some examples of how economic theory and empirical economics can shed light on these questions. The first session deals with problems of fiscal policy and public economics. In particular, the old question of the effectiveness of fiscal policy under uncertainty is tackled by new methodological tools. Institutional issues are analyzed, both on a macro level for the EU Stability and Growth Pact and on a micro level for long-time care. Finally, another old topic, the explanation of government growth, is analyzed empirically from a public choice perspective.