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should combine elements of market discipline with stabilisation in case of asymmetric shocks. Our proposal addresses the … shortcomings of most other reform designs, which fail to offer a solution for insolvent or non-cooperative euro countries. We …
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predicting euro area inflation. Excess liquidity is measured as the difference between the actual money stock and its fundamental …
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other reform designs which do not offer a solution for insolvent or noncooperative euro countries. We suggest a design which … combines fiscal insurance with an orderly procedure to restructure the debt of an insolvent euro member. We show that fiscal …
Persistent link: https://www.econbiz.de/10011300749
This paper explores the long run relationship between public and private investment in the euro area in terms of … investment might have restricted private investment and GDP growth in the euro area. The results have strong implications for the … future direction of fiscal austerity programs to combat the euro area debt crisis. …
Persistent link: https://www.econbiz.de/10010246065
There is a growing empirical literature studying whether fiscal rules reduce borrowing costs. Nevertheless, it remains an open question whether these rules are effective genuinely or just because they mirror fiscal preferences of politicians and voters. In our analysis of European bond spreads,...
Persistent link: https://www.econbiz.de/10010336738
This paper explores the long run relationship between public and private investment in the euro area in terms of … investment might have restricted private investment and GDP growth in the euro area. The results have strong implications for the … future direction of fiscal austerity programs to combat the euro area debt crisis. …
Persistent link: https://www.econbiz.de/10010248168