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Fiscal behaviour in the European Union: rules, fiscal decentralization and government indebtedness

Afonso, António; Hauptmeier, Sebastian - European Central Bank - 2009

We assess the fiscal behaviour in the European Union countries for the period 1990-2005 via the responsiveness of budget balances to several determinants. The resultsshow that the existence of effective fiscal rules, the degree of public spendingdecentralization, and the electoral cycle can...

Persistent link: https://www.econbiz.de/10005866594

Market Indicators, Bank Fragility, and Indirect Market Discipline

Gropp, Reint; Vesala, Jukka; Vulpes, Giuseppe - European Central Bank; UniCredit Group <Milano> - 2004

[...]This paper aims to ascertain the quality (that is, thepredictive power and prediction errors) of two marketindicators: the distance to default and the subordinated debtspread. Previous work has established that banks’ marketprices reflect contemporaneous information about bank riskin the...

Persistent link: https://www.econbiz.de/10005869753

The impact of public guarantees on bank risk taking: evidence from a natural experiment

Gropp, Reint; Gruendl, Christian; Guettler, Andre - European Central Bank - 2010

In 2001, government guarantees for savings banks in Germany were removed following a law suit. We use this natural experiment to examine the effect of government guarantees on bank risk taking, using a large data set of matched bank/borrower information. The results suggest that banks whose...

Persistent link: https://www.econbiz.de/10008752567

The reform and implementation of the Stability and Growth Pact

Morris, Richard; Ongena, Hedwig; Schuknecht, Ludger - European Central Bank - 2006

threaten the smooth functioning of Economic and Monetary Union (EMU). Ideally, fiscal rules should combine characteristics such …-based framework for fiscal polices in EMU. However, the implementation of the Pact was less than fully satisfactory. One year ago, the …

Persistent link: https://www.econbiz.de/10005344800

Measuring financial integration in the euro area

Baele, Lieven; Ferrando, Annalisa; Hördahl, Peter; … - European Central Bank - 2004

In this paper, we present a set of specific measures to quantify the state and evolution of financial integration in the euro area. Five key markets are considered, namely the money, corporate bond, government bond, credit and equity markets. Building upon the law of one price, we developed two...

Persistent link: https://www.econbiz.de/10005816123

Global bond portfolios and EMU

Lane, Philip R. - European Central Bank - 2005

We examine the bilateral composition of international bond portfolios for the euro area and the individual EMU member … countries. We find considerable support for “euro area bias”: EMU member countries disproportionately invest in one another … linkages in explaining asymmetries across EMU member countries in terms of their outward and inward bond investments vis …

Persistent link: https://www.econbiz.de/10005816164

Inflation and inflation uncertainty in the euro area

Caporale, Guglielmo Maria; Paesani, Paolo; Onorante, Luca - European Central Bank - 2010

change associated with the start of EMU in 1999. The main findings are as follows. Steadystate inflation and inflation … uncertainty have declined steadily since the inception of EMU, whilst short-run uncertainty has increased, mainly owing to …

Persistent link: https://www.econbiz.de/10008560373

EMU and the adjustment to asymmetric shocks: the case of Italy

Amisano, Gianni; Giammarioli, Nicola; Stracca, Livio - European Central Bank - 2009

In this paper we address the question on whether EMU has amplified or dampened intra euro area divergencies, by looking … to 2009. Our main result is that EMU does not appear to have materially changed the transmission mechanism of … idiosyncratic monetary shocks. The net effect of EMU, therefore, has been to reduce the relative performance variability. The …

Persistent link: https://www.econbiz.de/10008502692

Financial integration, international portfolio choice and the European Monetary Union

Santis, Roberto A. De; Gérard, Bruno - European Central Bank - 2006

, we show that the European Economic and Monetary Union (EMU) eased the access to the equity market and, to a larger extent …, the bond market; thereby, enhancing regional financial integration in the euro area. Beside the effect of the EMU, the …

Persistent link: https://www.econbiz.de/10005068632

Exchange rates and fundamentals: new evidence from real-time data

Ehrmann, Michael; Fratzscher, Marcel - European Central Bank - 2004

This paper analyses the link between economic fundamentals and exchange rates by investigating the importance of real-time data. We find that such economic news in the United States, Germany and the euro area have indeed been a driving force behind daily US dollar – euro/DEM exchange rate...

Persistent link: https://www.econbiz.de/10005070386