China's merchandise trade surplus has reached an all-time high and is likely to rise further. A key driver appears to be a policy push to further bolster Chinese domestic manufacturing production, implying the danger of significant overcapacities. China's imbalance between domestic production...

The case of Greece has reveiled an institutional gap remains in the institutional framework of EMU: an orderly insolvency mechanism for sovereign states. After weighing the pros and cons of such a mechanism, requirements are devised to max-imise the advantages and minimise the potential...

On June 7, 2015, the euro rescue fund will celebrate its 5th anniversary. Thus, it is time to take stock regarding the success of the reform strategy, the institutional relevance of the ESM, and current political challenges to the conditionality principle which is an essential pillar of the...

This paper presents and critically evaluates the bank capital requirement rules proposed by the European Union - the capital requirements directive CRD IV and the capital requirements regulation CRR. First, the rules of the Basel III accord about equity capital standards of banks are briefly...

Die Eurokrise hat sich seit dem Sommer 2011 dadurch zugespitzt, dass der Finanzmarkt Italien und Spanien sowie viele europäische Banken wesentlich kritischer beurteilte und seine Kapitalzufuhr deutlich drosselte. Ein Grundproblem dabei ist, dass Italien so groß ist, dass es für die...

The very expansive and unconventional monetary policy of the ECB reduced the tensions of the Euro debt crisis at the price of persistently very low interest rates. While the ECB was right to act at the peak of the crisis, the risks of the low-interest rate environment become increasingly...

The aim of this note is to provide an overview of various measures of "excess liquidity", which can be defined as the deviation of the actual stock of money from an estimated equilibrium level. Given their dynamic nature, the excess liquidity measures under review are - in the light of long and...

Monetary policies of the ECB and US Fed can be characterised by "Taylor rules", that is both central banks seem to be setting rates by taking into account the "output gap" and inflation. We also set up and tested Taylor rules which incorporate money growth and the euro-dollar exchange rate,...

Anders als die Bundesregierung es anzustreben scheint, ist eine Reform des Stabilitäts- und Wachstumspakts (SWP) nötig. Die Schuldenabbauregel zwingt hochverschuldete Euroländer zu einem zu schnellen und zu wachstumsschädlichen Schuldenabbau. Nur auf die Flexibilität des Pakts zu setzen,...