We examine economic convergence among euro area countries on multiple dimensions. While there was nominal convergence … of inflation and interest rates, real convergence of per capita income levels has not occurred among the original euro … currency and has reversed in the wake of the global economic crisis. New euro area members, in contrast, have seen real income …

effects. The announcement of an ECB euro liquidity line decreases the premium paid by foreign agents to borrow euros in FX … equity prices increase by around 1.75% in euro area countries highly exposed via banking linkages to countries whose …

This paper discusses proposals for common euro area sovereign securities. Such instruments can potentially serve two … functions: in the short-term, stabilize financial markets and banks and, in the medium-term, help improve the euro area economic …

currency area than the Euro Area. More intriguingly, the Euro Area shows striking changes in correlations and responses which … demand shocks to reinforce each other. An implication is that the Euro Area needs vigorous, coordinated regulation of its …

financial instruments within and across G-4 economies (Euro Area, Japan, U.K. and U.S.). The generated financial networks …