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Europeans like to believe the European Union has the collective economic size and capacity to determine its own economic destiny. But the behaviour of others global powers is increasingly calling this ability into question. China and the United States, especially, do not separate economic...
Persistent link: https://www.econbiz.de/10012025345
This Policy Contribution reviews the major challenges faced by the euro area, and discusses recent initiatives and the way forward. Some implications are drawn out for Latvia's euro accession, which is likely to be beneficial on balance. The euro area faces three major challenges: (1) high...
Persistent link: https://www.econbiz.de/10009503805
During the economic and financial crisis, the divide between young and old in the European Union increased in terms of economic well-being and allocation of resources by governments. As youth unemployment and youth poverty rates increased, government spending shifted away from education,...
Persistent link: https://www.econbiz.de/10011390489
long-term growth and productivity weakness. Finally, the EU, especially the euro area, suffers from a lack of convergence … incompatible with Europe’s social market economy. convergence in the eu and in the euro area is a necessity: the European growth … rest of the EU. The EU supports convergence through its budget and technical support but the fundamentals of this paradox …
Persistent link: https://www.econbiz.de/10012025374
Foreign direct investment is of increasing importance in the European Union. This paper estimates the effect of taxes on foreign direct investment (FDI) flows and on three sub-components of these flows for the countries of the en- larged European Union. The model in the spirit of gravity...
Persistent link: https://www.econbiz.de/10003304979
Persistent link: https://www.econbiz.de/10012991191
• The United Kingdom’s departure from the European Union will have implications for the European Parliament. Seventy-three of its 751 members are elected in the UK. Brexit offers a political opportunity to reform the allocation of seats to member states. • The European Parliament is a...
Persistent link: https://www.econbiz.de/10011737935
This Policy Contribution, based on a note written for the Bundestag EU Committee, explores the possible consequences of a no-deal Brexit for the European Union and assesses preparations on the EU side. It also provides guidance on the optimal strategy for the EU, depending on the choices made by...
Persistent link: https://www.econbiz.de/10011959922
In this paper we examine why monetary aggregates of euro area Member States have developed differently since the inception of the euro. We derive a money demand equation that incorporates housing wealth and collateral as well as substitution effects on real money holdings. Empirically, we show...
Persistent link: https://www.econbiz.de/10010208778
The eurozone remains in a deep, largely macro-economic crisis. A robust global economy and falling oil prices have … supported Europeś economy for some time, but by now it is clear that the eurozone will only be able to pull itself out of this …
Persistent link: https://www.econbiz.de/10011449399