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Has the Stability and Growth Pact Impeded Political Budget Cycles in the European Union?

Mink, Mark; Haan, Jakob de - CESifo - 2005

This paper examines whether there is a political budget cycle (PBC) in countries in the euro area. Using a multivariate model for the period 1999-2004 and various election indicators we find strong evidence that the Stability and Growth Pact has not restricted fiscal policy makers in the euro...

Persistent link: https://www.econbiz.de/10005765915

Liquidity Shortages and Monetary Policy

Cao, Jin; Illing, Gerhard - CESifo - 2008

pure illiquidity risk. It is shown that, when bad states are highly unlikely, public provision of liquidity may improve the … an incentive of financial intermediaries to free ride on liquidity in good states, resulting in excessively low liquidity … more liquid investment. In that case, liquidity injection will make the free riding problem even worse. The results show …

Persistent link: https://www.econbiz.de/10005766205

Credibility and Transparency of Central Banks: New Results Based on Ifo’s World Economicy Survey

Waller, Sandra; Haan, Jakob de - CESifo - 2004

This paper reports the results of a survey among private sector economists about credibility and transparency of central banks. In line with the survey of Alan Blinder among central bankers, we asked participants in Ifo’s World Economic Survey to answer questions on the importance and...

Persistent link: https://www.econbiz.de/10005094291

Capital Controls and Exchange Rate Regimes: An Empirical Investigation

Berger, Helge; Sturm, Jan-Egbert; Haan, Jakob de - CESifo - 2001

It is often argued that deregulation of international transactions and its effects on the “globalization” of financial markets is behind the decline in the attractiveness of fixed exchange rate regimes. We argue that, instead, much of the recently observed decrease in the level of capital...

Persistent link: https://www.econbiz.de/10005181251

Financial Fragility, Bubbles and Monetary Policy

Illing, Gerhard - CESifo - 2001

prevent a run on financial intermediation by injecting liquidity when asset values fall significantly. The inflationary side … a central bank to inject liquidity in a crisis. …

Persistent link: https://www.econbiz.de/10005181425

Global Financial Transmission of Monetary Policy Shocks

Ehrmann, Michael; Fratzscher, Marcel - CESifo - 2006

The paper shows that US monetary policy has been an important determinant of global equity markets. Analysing 50 equity markets worldwide, we find that returns fall on average around 3.8% in response to a 100 basis point tightening of US monetary policy, ranging from a zero response in some to a...

Persistent link: https://www.econbiz.de/10005181586