In this paper we suggest that Eurozone countries face a policy trade-off among: 1) a common rule imposing co … conclude that the intense fiscal rules that have been introduced in the Eurozone after the emergence of the debt crisis reduced …

' inflation aversion and exit costs …

The theory of optimal currency areas states that a currency union may succeed if the participating countries have …

inflation rates between Member States do not necessarily have to be an equilibrium phenomenon, even if the original shock comes …In this paper we propose an alternative explanation for the nature, sources and consequences of inflation rate … catching-up and inflation differentials and offer an interpretation of the nature of this interaction. Our discussion is in …

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 …

theory of optimum currency areas. We show that the asymmetric shock of the German unification can be seen not only as the …