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 second session deals with global monetary policy aiming at controlling inflation; the medium-run effects of Quantitative Easing; the consequences of economic cycles for cross-country economic inequality; and the interaction of monetary and fiscal policies in a monetary union.