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Oil Prices, Exchange Rates and Asset Prices

Fratzscher, Marcel; Schneider, Daniel; Robays, Ine Van - CESifo - 2013

This paper takes a financial market perspective in examining the relationship between oil prices, the US dollar and asset prices, and it exploits the heteroskedasticity for the identification of causality in a multifactor model. It finds a bidirectional causality between the US dollar and oil...

Persistent link: https://www.econbiz.de/10010877722

The Bail-Out! Positive Political Economics of Greek-type Crises in the EMU

Fahrholz, Christian; Wójcik, Cezary - CESifo - 2010

The Greek bail-out was highly controversial. An oft-heard assessment is that i) the bail-out was a mistake, ii) the political haggling over it was irrational and iii) the bail-out will create a moral hazard problem. Contrary to this view, our analysis suggests that, given EMU’s present...

Persistent link: https://www.econbiz.de/10008671732

The Eurozone Needs Exit Rules

Fahrholz, Christian; Wójcik, Cezary - CESifo - 2012

This paper argues that the key issue for defining and solving the Eurozone’s (EZ) difficulties lies in readjusting the relationship between the centre and the periphery of the EZ. Our argument proceeds in two steps. Firstly, the basic finance problem of a centre-periphery system is captured by...

Persistent link: https://www.econbiz.de/10010553271

Is Greece Turning the Corner? A Theory-Based Assessment of Recent Greek Macro-Policy

Arghyrou, Michael G. - CESifo - 2014

We use a macro-theory framework of analysis to assess Greek macro-policy with emphasis on the period of the Greek debt crisis. The latter is mainly the result of misguided past internal policies deviating from the policy lessons of modern macroeconomics. The current policy, however, provides a...

Persistent link: https://www.econbiz.de/10010948838

The Impact of Yuan Internationalization on the Euro-Dollar Exchange Rate

Benassy-Quere, Agnes; Forouheshfar, Yeganeh - CESifo - 2013

the euro-dollar exchange rate, within a three-country, three-currency portfolio model. Our static model shows that the … euro-dollar rate, whatever the exchange-rate regime of China. Moving to a dynamic, stock-flow framework, we show that the …

Persistent link: https://www.econbiz.de/10010877786

The Equilibrium Value of the Euro/$ US Exchange Rate: An Evaluation of Research

Stein, Jerome L. - CESifo - 2001

The ultimate object of research concerning the Euro is to answer the following questions: (#1) What is the equilibrium … trajectory of the nominal euro, measured as dollars/euro? (#2) To what extent has the equilibrium nominal euro been determined by … transitory factors in affecting the value of the euro? (#4) Is the euro currently undervalued, and by what criteria? Our …

Persistent link: https://www.econbiz.de/10005766122

Has the Euro Affected the Choice of Invoicing Currency?

Ligthart, Jenny; Werner, Sebastian E. V. - CESifo - 2010

We present a new approach to study empirically the effect of the introduction of the euro on currency invoicing. Our … home currency invoicing after the introduction of the euro. In addition, the euro as a vehicle currency has overtaken the … role of the US dollar in Norwegian imports. The econometric analysis shows a significant effect of euro introduction above …

Persistent link: https://www.econbiz.de/10008533991

Zooming Out: The Trade Effect of the Euro in Historical Perspective

Berger, Helge; Nitsch, Volker - CESifo - 2005

currencies and adopted a new common currency, the euro. Several recent papers argue that the introduction of the euro has led (by … put the trade effect of the euro in historical perspective. We argue that the creation of the EMU was a continuation (or … integration, the euro’s impact on trade disappears. Moreover, a significant part of the trend in European trade integration is …

Persistent link: https://www.econbiz.de/10005405814

Statements of ECB Officials and their Effect on the Level and Volatility of the Euro-Dollar Exchange Rate

Jansen, David-Jan; Haan, Jakob de - CESifo - 2003

This paper studies the reaction of the mean and volatility of the euro-dollar exchange rate to statements of ECB … officials during the first years of EMU. We focus on statements on monetary policy and the (potential) strength of the euro. We …. In some cases there are effects of statements on the level of the euro-dollar rate. Efforts to ‘talk up’ the euro have …

Persistent link: https://www.econbiz.de/10005094406

China and its Dollar Exchange Rate: A Worldwide Stabilizing Influence?

McKinnon, Ronald Ian; Schnabl, Gunther - CESifo - 2011

We argue that criticism concerning the Chinese dollar peg is misplaced as no predictable link exists between the exchange rate and the trade balance of an international creditor economy. The stable nominal yuan/dollar rate is argued to have stabilized Chinese, East Asian and global growth....

Persistent link: https://www.econbiz.de/10009019144