Similar Search Results

Euro Area: Single Currency - National Money Creation

Kooths, Stefan; Roye, Björn van - Institut für Weltwirtschaft (IfW) - 2012

The Eurosystem has been pursuing a crisis management policy for more than four years now. This policy aims primarily at maintaining financial stability in the euro area by providing vast liquidity support to commercial banks that are operating in nationally segmented banking systems. As a side...

Persistent link: https://www.econbiz.de/10010886947

Current Account Imbalances and Income Inequality: Theory and Evidence

Al-Hussami, Fares; Remesal, Álvaro Martín - Institut für Weltwirtschaft (IfW) - 2012

In this paper we analyze theoretically and empirically the impact of an increase in income inequality on the current account balance. We develop a model with consumption externalities and heterogeneous agents which explains how an increase in income inequality can affect negatively or positively...

Persistent link: https://www.econbiz.de/10010886828

Are current account deficits sustainable? New evidence from Iran using bounds test approach to level relationship

Heidari, Hassan; Katircioglu, Salih Turan; Davoudi, Narmin - Institut für Weltwirtschaft (IfW) - 2012

This paper provides new evidence on the long-run relationship between exports and imports of the Iranian economy by employing bounds test approach to level relationship. In Iran, there have been many unusual policy changes and/or external shocks to the economy which resulted in the occurrence of...

Persistent link: https://www.econbiz.de/10010956087

Should We Trust the Empirical Evidence from Present Value Models of the Current Account?

Mercereau, Benoît; Miniane, Jacques Alain - Institut für Weltwirtschaft (IfW) - 2008

The present value model of the current account has been very popular, as it provides an optimal benchmark to which actual current account series have often been compared. We show why persistence in observed current account data makes the estimated optimal series very sensitive to small-sample...

Persistent link: https://www.econbiz.de/10005083366

Global Current Account Imbalances and Exchange Rate Adjustment: The Role of Oil Suppliers Valuation Effects and Interest Rate Changes

Oberpriller, Christian M. - Institut für Weltwirtschaft (IfW) - 2007

The present paper extends the Obstfeld and Rogoff (2005) framework of current account imbalances by the oil exporting … current account imbalances. We find that including the oil exporting countries as an additional region consisting of OPEC and … imbalances might be eliminated, our model predicts a real dollar depreciation in the range of 29.9 to 52.6 percent. …

Persistent link: https://www.econbiz.de/10005700490

Exchange Rates and Global Imbalances: The Importance of Asset Valuation Effects and Interest Rate Changes

Oberpriller, Christian M. - Institut für Weltwirtschaft (IfW) - 2007

This paper analyzes two effects which might have an important impact on a reduction of global external imbalances … imbalances. The outcome is a reduced need for real dollar depreciation because the United States will largely benefit from …

Persistent link: https://www.econbiz.de/10005818773

The role of lenders' trust in determining borrowing conditions for sovereign debt: An analysis of one-period government bonds with default risk

Guo, Yanling - Institut für Weltwirtschaft (IfW) - 2015

In this paper, the author considers the sovereign debt in the form of one-period government bonds with default risk, which can be purchased by and traded among domestic and foreign investors. She shows that the weight assigned to the lenders' interest by the borrowing government at the time of...

Persistent link: https://www.econbiz.de/10011269110

The debt-growth nexus in poor countries: a reassessment

Presbitero, Andrea F. - Institut für Weltwirtschaft (IfW) - 2007

This paper investigates the relationship between external indebtedness and economic growth, with a particular attention to LICs, for which the theoretical arguments of debt overhang and liquidity constraint have to be reconsidered. The estimation of a growth model, with a panel of 121 developing...

Persistent link: https://www.econbiz.de/10005083427

Why Donors of Foreign Aid Do Not Coordinate: The Role of Competition for Export Markets and Political Support

Fuchs, Andreas; Nunnenkamp, Peter; Öhler, Hannes - Institut für Weltwirtschaft (IfW) - 2013

Development assistance has been criticized for a lack of coordination between aid donors. This paper argues that competition for export markets and political support prevents donor countries from closer coordination of aid activities. To test these hypotheses, we perform logit and fractional...

Persistent link: https://www.econbiz.de/10010886960

Structural heterogeneity and partial budgetary cooperation in a monetary union

Menguy, Séverine - Institut für Weltwirtschaft (IfW) - 2012

The paper analyzes the usefulness of budgetary cooperation in a monetary union, even if it is limited to a subgroup of countries with close structural characteristics. The author finds that its advantages depend on the nature of the shocks and on the width of the heterogeneities within the...

Persistent link: https://www.econbiz.de/10010956125