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Target Losses in Case of a Euro Break-Up

Sinn, Hans-Werner - 2012

Evaluation of the financial costs of a Eurozone breakup depends critically on the interpretation of TARGET balances …. While it has been argued that TARGET claims in the Eurozone can be written off without incurring any losses on the claimants …

Persistent link: https://www.econbiz.de/10013098046

Smells Like Fiscal Policy? Assessing the Potential Effectiveness of the ECB's OMT Program

Hristov, Nikolay - 2014

This paper explores the potential effectiveness of the ECB's Outright Monetary Transaction (OMT) program in safeguarding an appropriate monetary policy transmission. Since the program aims at manipulating bank lending rates by conducting sovereign bond purchases on secondary markets, a stable...

Persistent link: https://www.econbiz.de/10013057668

How to Be Well Shod to Absorb Shocks? Shock Synchronization and Joining the Euro Zone

Gilson, Natacha (Nathalie) - 2021

This paper examines the demand and supply shocks observed in the present Eurozone member states and those observed in … some neighboring countries. The analysis is based on recent data and each Eurozone member country is compared with an … aggregate series corresponding to an area made up of the entire Eurozone minus the country being compared. The results of the …

Persistent link: https://www.econbiz.de/10013317269

Fiscal Transfers in a Monetary Union with Exit Option

Hefeker, Carsten - 2015

It is widely debated whether a monetary union has to be accompanied by a fiscal transfer scheme to accommodate asymmetric shocks. We build a model of a monetary union with a central bank and two heterogeneous countries that are linked by a fiscal transfer scheme with repercussions on monetary...

Persistent link: https://www.econbiz.de/10013025966

The Euro and Inflation Uncertainty in the European Monetary Union

Caporale, Guglielmo Maria; Kontonikas, Alexandros - 2021

This paper investigates the relationship between inflation and inflation uncertainty in twelve EMU countries. A time-varying GARCH model is estimated to distinguish between short-run and steady-state inflation uncertainty. The effects of the introduction of the Euro in 1999 are then examined...

Persistent link: https://www.econbiz.de/10013317342

Optimal Fiscal Policy with Labor Selection

Chugh, Sanjay K. - 2018

This paper characterizes long-run and short-run optimal fiscal policy in the labor selection framework. In a calibrated non-Ramsey decentralized equilibrium, labor market volatility is inefficient. Keeping fixed the structural parameters, the Ramsey government achieves efficient labor market...

Persistent link: https://www.econbiz.de/10012912678

Fiscal Multipliers and the Choice of Zero Lower Bound Modeling

Siemsen, Thomas - 2013

In this note we elaborate on the effect of the modeling choice of the zero lower bound on the size of the fiscal multiplier. To this end we contrast two different ways to implement the ZLB in a New Keynesian model: the ZLB modeled as an endogenous central bank reaction to a contractionary demand...

Persistent link: https://www.econbiz.de/10013078525

Unconventional Fiscal Policy, Inflation Expectations, and Consumption Expenditure

D'Acunto, Francesco - 2016

Unconventional fiscal policies incentivize households to accelerate consumption by generating future consumer price ination, and offer an alternative to unconventional monetary policy (Correia et al. (2013)). We use a natural experiment to study the causal effect of unconventional fiscal...

Persistent link: https://www.econbiz.de/10012995195

Unconventional Fiscal Policy

D'Acunto, Francesco; Hoang, Daniel; Weber, Michael - 2021

Unconventional fiscal policy uses announcements of future increases in consumption taxes to generate inflation expectations and accelerate consumption expenditure. It is budget neutral and time consistent. We provide preliminary evidence for the effectiveness of such policies using changes in...

Persistent link: https://www.econbiz.de/10013315437

The Eurozone Needs Exit Rules

Fahrholz, Christian; Wójcik, Cezary - CESifo - 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/10010553271