derogation from adopting the euro as their currency (that is, each country joining the EU commits to replace its national … currency with the euro, but can choose when to request permission to do so). For most of these countries, adopting the euro … convergence with the rest of the euro area. …

This 2012 Article IV Consultation—Selected Issues Paper on Euro Area Policies argues that the creation of a common … eurozone financial stability architecture is an immediate priority to restore the viability of the Economic and Monetary Union … characterizes the downward spirals at play in periphery euro area countries and describes the process of financial de …

To live up to its growth potential and secure its inclusive social model, the euro area must make better use of its …-term problem and to facilitate the return to fiscal sustainability. Labor utilization in the euro area has been lagging …€”including through some harmonization of key features of the labor market, which will help deal with intra-euro area imbalances …

the euro area. The model includes real, nominal and financial frictions, and hence both monetary and macroprudential …

euro area to offset the negative impact of fiscal consolidation required to put public debt back on a sustainable path. The …

This Selected Issues paper on Euro Area Policies 2013 Article IV Consultation highlights the monetary transmission … mechanism and monetary policies. The European Central Bank has announced the Outright Monetary Transactions framework to address … periphery spreads. Weak growth and high levels of private balance sheet debt in the periphery are weighing on the health of bank …

balances, gradual economic recovery) explains the region’s resilience to financial market spillovers during the euro area … crisis. Our generalised variance decomposition analyisis does not suggest strong direct spillovers from the euro area …

While the use of public resources is critical to cushion the impact of the financial crisis on the euro-area economy … perspective, to what extent do movements in euro area sovereign spreads reflect country-specific solvency concerns? In line with … previous studies, the paper suggests that euro area sovereign risk premium differentials tend to comove over time and are …

the Czech koruna, reflecting differences in the frequency of central bank intervention in the foreign exchange market. A … GARCH model shows a positive impact of the introduction of the Euro on exchange rate volatility for the Polish zloty … (negative for the Czech koruna), related to its larger exposure to external shocks. For countries in transition to Euro …