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It is commonly thought that an open economy can accommodate output shocks through either exchange rate or real sector adjustments. We formalise this notion by incorporating labour market rigidities into an “escape clause” model of currency crises. We show that the absence of structural...
Persistent link: https://www.econbiz.de/10009639466
coincide with a movement in the mean of the RND towards a weaker yen both against the US dollar and the euro, as well as with …
Persistent link: https://www.econbiz.de/10009639470
, Czech Republic and Hungary vis-à-vis the euro and the US dollar to estimate the risk-neutral density (RND) functions and the …
Persistent link: https://www.econbiz.de/10002814277
correlations. We then apply the correlation forecasts to two policyrelevant topics, to produce scenario analyses for the euro …
Persistent link: https://www.econbiz.de/10002817395
Persistent link: https://www.econbiz.de/10002233657
transmission processes at the systemic level. We use the euro area financial accounts (flow of funds) data to construct a sector … leverage and asset volatility. We conclude that the bilateral cross-sector exposures in the euro area financial system …
Persistent link: https://www.econbiz.de/10009640455
transmission processes at the systemic level. We use the euro area financial accounts (flow of funds) data to construct a sector … leverage and asset volatility. We conclude that the bilateral cross-sector exposures in the euro area financial system …
Persistent link: https://www.econbiz.de/10003969268