Showing 1 - 10 of 33
This paper examines the historical record of the Austro-Hungarian monetary union, focusing on its bargaining dimension. As a result of the 1867 Compromise, Austria and Hungary shared a common currency, although they were fiscally sovereign and independent entities. By using repeated threats to...
Persistent link: https://www.econbiz.de/10005136457
This Paper focuses on the pass-through of exchange rate changes into the prices of imports made by euro area countries originating outside the area. Using data on import unit values for 13 different product categories for each country, we estimate industry-specific rates of pass-through across...
Persistent link: https://www.econbiz.de/10005067653
In recent decades, the issues of federalism and political integration have gained prominence in public debate as well … as in the academic realm. A frequently made point is that allowing free secession may protect the minority’s interests … unattractive for the minority region. In contrast, limiting the secession possibilities by requiring the consent of a majority of …
Persistent link: https://www.econbiz.de/10005788882
prevent credible secession threats by regions of the country. Severity of internal tension has been linked to degree of …
Persistent link: https://www.econbiz.de/10005123952
determining the likelihood of secession and unification. We provide empirical support for choosing genetic distances as a proxy of … the regions prone to secession and the countries that are more likely to merge. Our framework is further applied to …
Persistent link: https://www.econbiz.de/10005136479
This paper looks at the economic impact of secession through the lens of the disintegration of the former Yugoslavia … there has been no favourable economic impact of secession and that how secession was achieved is key in understanding the … subsequent economic performance of the newly independent countries. In cases of secession without conflict, independence did not …
Persistent link: https://www.econbiz.de/10011083216
A monetary union is modelled as a technology that makes surprise devaluations impossible but requires voluntarily participating countries to follow the same monetary policy. It is shown that for low discount factors and sufficiently correlated shocks welfare in the union is higher than that...
Persistent link: https://www.econbiz.de/10005662125
The Paper draws its motivation from the observation that, three years into the single currency, EMU financial markets are making only slow progress towards integration and from the belief that economic history can offer useful insight as to the causes of the phenomenon. In this vein, we...
Persistent link: https://www.econbiz.de/10005666915
The combination of discretionary monetary policy, labour-market distortions and nominal wage rigidity yields an inflation bias as monetary policy tries to exploit nominal wage contracts to address labour-market distortions. Although an inflation target eliminates this inflation bias, it creates...
Persistent link: https://www.econbiz.de/10005667138
This paper assesses the relevance of the exchange rate regime for stabilization policy. This regime question cannot be dealt with independently of other institutions, in particular how fiscal policy is designed. We show that once fiscal policy is taken into account, the exchange rate regime is...
Persistent link: https://www.econbiz.de/10005791985