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, 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 …

adaptation in Europe, and in particular Germany, Finland and Italy. Furthermore, a systematic overview on fiscal aspects of …

In the current debate on the reasons and implications of the Greek and Irish euro crisis, the intra-European current … spending, Germany is urged to reduce its current account surplus by increasing wages to forestall a new build-up of … imbalances since the euro introduction and thereby the current European debt crisis. Based on this finding we argue that an …