consider improvements to market design and regulation as these two energy markets become increasingly interlinked. …

The euro area will not have a centralised budget and smoothing of country-specific asymmetric shocks via private …

is described using a stochastic regime-switching model; second, the euro area governments’ responses to uncertain … macroeconomic policies in Greece are considered. The model's mechanism and assumptions allow either for a Grexit from the euro area … understand key drivers of the long-winded negotiations between the Syiza government and the euro area governments. …

In this paper we investigate the impact of the euro integration process on the drivers of FDI inflows. We show … bilateral gravity models of FDI inflows into euro area countries, we show that the euro facilitates intra-euro area vertical FDI … flows but reduces incentives for horizontal or market seeking FDI. Instead, horizontal FDI flows stemming from investor …

In this paper, sound public finances under the euro means sustainability in the long term instead of short- and medium …-term fiscal discipline. The challenges to sustainability are identified for the four largest euro area member states, and several … resort for a euro area government under liquidity shortage to prevent it from developing into a general financial crisis …

no evidence of a euro effect on trade flows among early euro adopters up to the year 2002. Second, this finding is robust … to extending the sample period to incorporate data up to 2013, covering five additional euro accessions. Third, while … there is no robust evidence of a euro effect, there is evidence that intra-EU trade flows have expanded faster than the …

Within a two-step GARCH framework we explore the linkages between equity returns of ten sectors in the euro area, the …. Spillover effects of aggregate market innovations have generally outweighed intra-sectoral spillover effects. Overall, the … process towards higher integration has been primarily a phenomenon of equity markets in the euro area and the United States. …

We examine the euro area monetary policy transmission process using post-1999 data, with two main questions in mind … data limitations, we concentrate on three blocks of transmission: the banking, interest-rate and asset-market channels. We …. On the financial-market channels, our evidence is somewhat weaker but suggestive. The interest-rate channel appears to …