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The ECB has been arguing in the past that since there is no trade-off between price stability and financial stability, the pursuit of price stability is the best a central bank can do to also maintain financial stability. We argue that there is a potential trade-off between price stability and...
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In this paper we suggest that Eurozone countries face a policy trade-off among: 1) a common rule imposing co … conclude that the intense fiscal rules that have been introduced in the Eurozone after the emergence of the debt crisis reduced …
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In this paper we address the issue of how transmission uncertainty could affect the choice between a federal monetary policy based on national data and one on aggregated data.We find that the uncertainty about the transmission process increases the need to take into account information about...
Persistent link: https://www.econbiz.de/10011506467
In this paper we provide empirical evidence documenting the nature of the Eurozone's fragility. We find that during … periods of turmoil, financial markets have tended to impose strong programs of austerity on member countries of the Eurozone … present in the Eurozone. Our policy conclusion is that the institutional changes that have been introduced in the Eurozone …
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