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Till labor cost do us part : on the long run convergence of EMU countries

Pancotto, Francesca; Pericoli, Filippo Maria - 2011

A sustainable long-run pattern in the relative competitiveness of euro area countries is a key factor for the survivorship of the monetary union. We analyze the issue focussing on unit labor cost dynamics using cointegration analysis for the whole economy and for the manufacturing sector...

Persistent link: https://www.econbiz.de/10011735051

Real convergence in the euro area : a long-term perspective

Díaz del Hoyo, Juan L.; Dorrucci, Ettore; Heinz, … - 2017

that of higher-income economies since the start of monetary union. The significant real convergence performance of some of … view" and reviewing the evidence since the 1960s, this paper shows that certain member countries began to face a "non-convergence … driving real convergence in the euro area over time, alongside other factors; and (ii) the crucial interaction of real …

Persistent link: https://www.econbiz.de/10011755500

The transition of China to sustainable growth : implications for the global economy and the euro area

Dieppe, Alistair (ed.); Gilhooly, Robert (ed.); … - 2018

China's rise has been the economic success story of the past four decades but economic growth has been slowing and domestic imbalances have widened. This paper analyses the recent evolution of China's imbalances, the risks they pose to the economic outlook and the potential impact of a...

Persistent link: https://www.econbiz.de/10011792634

Interdependence of Fiscal Debts in EMU

Demertzis, Maria - 2011

We use an overlapping generations model to show that a bail-out is the optimal response to a fiscal crisis when the level of integration in a Monetary Union is high and the departure from Ricardian equivalence is significant. As it may not be optimal expost, the no bail-out rule is not credible...

Persistent link: https://www.econbiz.de/10013118957

Fiscal Discipline in EMU? Testing the Effectiveness of the Excessive Deficit Procedure

de Jong, Jasper - 2018

The Excessive Deficit Procedure (EDP), central to the Stability and Growth Pact, is criticized for both its procyclical effects and – in contrast – a perceived lack of enforcement. To test its actual effects, we construct a real-time database of EDP recommendations and estimate augmented...

Persistent link: https://www.econbiz.de/10012910189

Towards a single performance indicator in the EU's fiscal governance framework : an assessment of the expenditure and structural balance rules in the European fiscal governance fra...

Benalal, Nicholai; Freier, Maximilian; Melyn, Wim; … - 2022

A key element of the European reform agenda is to simplify the EU fiscal governance framework by moving towards a single debt anchor and a single operational indicator as the basis for formulating fiscal targets and assessing compliance. This paper puts forward an in-depth analysis of two...

Persistent link: https://www.econbiz.de/10012800643

Does the Stability and Growth Pact Induce a Bias in the EC's Fiscal Forecasts

Gilbert, Niels D. - 2014

Enforcement of European fiscal rules, to a large extent, hinges on the fiscal forecasts prepared by the European Commission (EC). The reliability of these forecasts has received little attention in the literature, despite the fact that i) the forecasts have potentially far-reaching consequences...

Persistent link: https://www.econbiz.de/10013040182

Monetary-fiscal policy interactions in the euro area

2021

The last review of the ECB’s monetary policy strategy in 2003 followed a period of predominantly upside risks to price stability. Experience following the 2008 financial crisis has focused renewed attention on the question of how monetary and fiscal policy should best interact, in particular...

Persistent link: https://www.econbiz.de/10012650770

Public and private risk sharing : friends or foes : the interplay between different forms of risk sharing

Giovannini, Alessandro; Ioannou, Demosthenes; Stracca, Livio - 2022

Well-functioning risk-sharing arrangements are essential for the shock absorbing capacity and resilience of an economy, even more so for countries in a monetary union where the single monetary policy is unable to address asymmetric shocks. The common shocks that euro area member states have been...

Persistent link: https://www.econbiz.de/10013256112

The macroeconomic and fiscal impact of population ageing

Bodnár, Katalin; Nerlich, Carolin - 2022

The euro area, like many other advanced economies, has entered an era of drastic demographic change. Without appropriate policy responses, population ageing in the euro area is posing formidable challenges for potential growth, monetary policy and public finances. This paper examines - from a...

Persistent link: https://www.econbiz.de/10013286706