The decision to launch EMU has focused attention on possible asymmetries in output and prices responses to the single monetary policy across EU countries. Unfortunately, the numerous attempts to establish the extent of such asymmetries in the context of empirical macroeconomic models have not...

Most OECD countries have experienced a sharp reduction in the volatility of output and inflation over the past three decades. Although this Great Moderation process has stirred considerable interest in economic and policy circles, research on its causes has so far tended to focus on the US...

The paper discusses the risks and challenges faced by the new members on the road to the euro and the strategies for and timing of euro adoption. We investigate the real-nominal convergence nexus from the perspective of euro area entry. We argue that the initial level of economic development as...

It has to be kept in mind that there is no general construction principle for a perfect composite leading indicator. It is only possible to optimise the construction of such an indicator with respect to specified demands. In the case of the EU Economic Sentiment Indicator the question is if top...

In a little over one year, Economic and Monetary Union (EMU) will enter its third and final phase. As the date of 1st January 1999 approaches, the debate over European monetary unification is accelerating. The time has come, therefore, to shift our attention from the legal and technical issues...

In a little over one year, Economic and Monetary Union (EMU) will enter its third and final phase. As the date of 1st January 1999 approaches, the debate over European monetary unification is accelerating. The purpose of the present paper is to review and assess the recent debate. This review is...

This paper argues that ECB credibility in delivering price stability is being progressively eroded; this problem could be overcome by embracing greater transparency especially about the ECB's objectives, macroeconomic forecasts and decision-making. During the ECB's first decade, average...

The Maastricht Treaty provided the blueprint for achieving Economic and Monetary Union (EMU) as a further stage in the process of political and economic integration of the European Union (EU). In order to qualify to participate in EMU, Member States were required to achieve a high degree of...

The advent of EMU inspired a large literature searching for differences in the monetary policy transmission among European countries. Stylised facts seemed to arise, classifying the countries as having either rapid or slow transmission. This paper takes a comprehensive look at the existing...

The paper studies the impact of a securities transaction tax (STT) on financial trading, stock prices and real economic variables in a closed-economy dynamic stochastic general-equilibrium model featuring financial frictions. The model incorporates channels by which 'noise trading' affects real...