Showing 61 - 70 of 150
Persistent link: https://www.econbiz.de/10009425645
Do euro area inflation expectations remain well-anchored? This paper finds that the protracted period of low (and below-target) inflation in the euro area since 2013 has weakened their anchoring. Testing their sensitivity to inflation and macroeconomic news, this paper expands existing results...
Persistent link: https://www.econbiz.de/10011878736
This paper estimates the effects of the Maastricht treaty's fiscal criterion on EU countries' general government … deficits and surpluses. After the rule is adopted, the distribution of government deficits among EU countries displays 20 … significant. Finally, we derive country-specific impacts under a rank invariance assumption and find that all EU countries have …
Persistent link: https://www.econbiz.de/10011905895
Despite closing output gaps and tightening labor markets, inflation has remained low in the euro area. Based on an augmented Phillips Curve framework, we find that this phenomenon-sometimes attributed to low global inflation-has been primarily caused by a remarkable persistence of inflation,...
Persistent link: https://www.econbiz.de/10011905915
Persistent link: https://www.econbiz.de/10010441921
This paper presents a novel approach to investigate and model the network of euro area banks' large exposures within the global banking system. Drawing on a unique dataset, the paper documents the degree of interconnectedness and systemic risk of the euro area banking system based on bilateral...
Persistent link: https://www.econbiz.de/10012102210
space. We build on the model by Berger and others (2019) to compare gains from alternative mechanisms of EU fiscal … integration in the presence of moral hazard. We show that any EU response strategy to the COVID-19 crisis excluding mutual … in presence of increasing sovereign default risk of some EU member countries. The moral hazard created by risk sharing …
Persistent link: https://www.econbiz.de/10012302037
We reconsider the design of welfare-optimal monetary policy when financing frictions impair the supply of bank credit, and when the objectives set for monetary policy must be simple enough to be implementable and allow for effective accountability. We show that a flexible inflation targeting...
Persistent link: https://www.econbiz.de/10012392579
In the last decade, over half of the EU countries in the euro area or with currencies pegged to the euro were hit by …
Persistent link: https://www.econbiz.de/10012009587
This paper explores the determinants of profitability across large euro area banks using a novel approach based on conditional profitability distributions. Real GDP growth and the NPL ratio are shown to be the most reliable determinants of bank profitability. However, the estimated conditional...
Persistent link: https://www.econbiz.de/10012154822