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Fiscal divergence and current account imbalances in Europe

Schnabl, Gunther; Wollmershäuser, Timo - 2013

Since the breakdown of the Bretton Woods System diverging current account positions in Europe have prevailed. While the Southern and Western European countries have tended to run current account deficits, the current accounts of the Central and Northern European countries, in particular Germany,...

Persistent link: https://www.econbiz.de/10010291505

Fiscal spillovers in the Euro area

Caporale, Guglielmo Maria; Girardi, Alessandro - 2011

This paper analyses the dynamic effects of fiscal imbalances in a given EMU member state on the borrowing costs of other countries in the euro area. The estimation of a multivariate, multi-country time series model (specifically a Global VAR, or GVAR) using quarterly data for the EMU period...

Persistent link: https://www.econbiz.de/10010280818

The Euro Crisis and Economic Growth: A Novel Counterfactual Approach

Terzi, Alessio - 2019

warranted. To make this claim, this paper uses a Propensity Score Matching Model to produce counterfactuals for the Eurozone … more in the Eurozone periphery than in the standard counterfactual scenario. These results are not dictated by any specific … Eurozone’s specificity, which is instead to be traced back to a sharper-than-expected contraction in investment and fiscal …

Persistent link: https://www.econbiz.de/10012052852

Has the euro affected the choice of invoicing currency?

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

. One of the key findings is that the eurozone countries in trade with Norway have substantially increased their share of … size, and product composition). However, the rise in producer currency invoicing by eurozone countries is primarily caused …

Persistent link: https://www.econbiz.de/10010275698

The Eurozone needs exit rules

Fahrholz, Christian; Wójcik, Cezary - 2012

This paper argues that the key issue for defining and solving the Eurozone's (EZ) difficulties lies in readjusting the …

Persistent link: https://www.econbiz.de/10010283606

The impact of FX central bank intervention in a noise trading framework

Beine, Michel; De Grauwe, Paul; Grimaldi, Marianna - 2005

In this paper we investigate the effects of central bank interventions (CBI) in a noise trading model with chartists and fundamentalists. We first estimate a model in which chartists extrapolate past returns and fundamentalists forecast a mean reverting dynamics of the exchange rate towards a...

Persistent link: https://www.econbiz.de/10010261316

The Fragility of two Monetary Regimes: The European Monetary System and the Eurozone

Ji, Yuemei; De Grauwe, Paul - 2013

We analyze the similarities and the differences in the fragility of the European Monetary system (EMS) and the Eurozone … foreign exchange markets while in the Eurozone it was the absence of a lender of last resort in the long-term government bond … Eurozone the roles were reversed. The national central banks that became part of the Eurosystem were strengthened. This came at …

Persistent link: https://www.econbiz.de/10010328861

Target balances and the German financial account in light of the European balance-of-payments crisis

Sinn, Hans-Werner; Wollmershäuser, Timo - 2012

As shown in Sinn and Wollmershäuser (2012a), during the European balance-of-payments crisis, inter-governmental credit and Target credit granted by core-country central banks have replaced private international capital flows in financing the crisis countries' current account deficits, and even...

Persistent link: https://www.econbiz.de/10010291492

Predictive ability of business cycle indicators under test: A case study for the euro area industrial production

Carstensen, Kai; Wohlrabe, Klaus; Ziegler, Christina - 2010

In this paper we assess the information content of seven widely cited early indicators for the euro area with respect to forecasting area-wide industrial production. To this end, we use various tests that are designed to compare competing forecast models. In addition to the standard...

Persistent link: https://www.econbiz.de/10010270868

The impact of fiscal rules on public finances: Theory and empirical evidence for the Euro area

Marneffe, Wim; van Aarle, Bas; van der Wielen, Wouter; … - 2010

This paper presents a review of the most significant fiscal rules policymakers can choose from. The insights from this review are then applied to the current budgetary situation of the European Union. In the European Union, the supranational Stability and Growth Pact (SGP) should provide the...

Persistent link: https://www.econbiz.de/10010274725