size of euro capital markets and the existing roles of European currencies in international capital markets. The paper also … examines the euro’s impact on international securities markets, including the role of the ECB, the evolution of EMU securities …, as are the broader implications of the introduction of the euro for changes in international capital flows, international …

The success of European Economic and Monetary Union (EMU) will depend on the stability of the euro. The monetary policy … inflation targeting rule that includes output. Implications for the euro as a reserve currency are examined in the light of the …

The paper compares the degree of capital market integration across euro-area countries with that across regions in … capital flows within the euro area that would entail sizable shifts in countries’ equilibrium current accounts …

This paper explores inflation determinants within the EU and implications for new members'' euro adoption plans. Factor …

over the period from 1948 through 2008. We find that, with the introduction of the euro, trade imbalances among euro area … tends to be more balanced when nominal exchange rates are flexible. Intra-euro area imbalances also seem to have become more … persistent with the introduction of the euro, some of which is linked to labor market inflexibility. Reviewing the direction of …

We reconsider the design of welfare-optimal monetary policy when financing frictions impair the supply of bank credit …-optimal Ramsey policy. The macro-financial trade-off in our estimated model of the euro area turns out to be modest, implying that …

This paper presents a novel approach to investigate and model the network of euro area banks' large exposures within … risk of the euro area banking system based on bilateral linkages. We develop a Contagion Mapping model fully calibrated … with bank-level data to study the contagion potential of an exogenous shock via credit and funding risks. We find that …

The paper focuses on the impact of diversification on bank performance and how consolidation through mergers and … indigenous banks, as compared to foreign competitors in the ECCU. We then simulate bank mergers both within and across ECCU … countries by combining individual banks' balance sheets. The simulation shows that a typical indigenous bank could better …

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 …