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The Stability and Growth Pact as an Impediment to Privatizing Social Security

Razin, Assaf; Sadka, Efraim - 2022

The aging of the population shakes the confidence in the economic viability of pay-as-you-go social security systems. We demonstrate how in a political-economy framework the shaken cofidence leads to the downsizing of the social security-system, and to the emergence of supplemental individual...

Persistent link: https://www.econbiz.de/10013322100

A Tale of Politically-Failing Single-Currency Area

Razin, Assaf - 2012

and recovery patterns for key EU members like Germany and France, within the Eurozone, were similar. However, after the … bubble burst and the crisis began unfolding it became clear that the Eurozone plight differed from America's in one … fundamental respect. There was no exact counterpart of Eurozone GIIPS (Greece, Italy, Ireland, Portugal, and Spain) in the United …

Persistent link: https://www.econbiz.de/10013100996

Eurowinners and Eurolosers : The Distribution of Seigniorage Wealth in Emu

Sinn, Hans-Werner - 2010

The European Monetary Union (EMU) will involve socialization of the existing seigniorage wealth of the national central banks, because the Euro will have to be bought by these banks in exchange for assets which have been accumulated in the historical process of money creation. This socialization...

Persistent link: https://www.econbiz.de/10012763579

The Ecb's Fiscal Policy

Sinn, Hans-Werner - 2018

While the ECB helped mitigate the euro crisis in the aftermath of Lehman, it has stretched its monetary mandate and moved into fiscal territory. This text describes and summarizes the crucial role played by the ECB in the intervention spiral resulting from its bid to manage the crisis. It also...

Persistent link: https://www.econbiz.de/10012918640

The Minimum Inflation Rate for Euroland

Sinn, Hans-Werner; Reutter, Michael - 2021

As a result of the Balassa effect relative prices change rapidly between and within the euro countries. Thus it is impossible to find a common monetary policy that will result in price stability in all countries. Based on empirical estimates of the Balassa model, the paper calculates a minimum...

Persistent link: https://www.econbiz.de/10013248677

Why Has the Euro Been Falling? An Investigation into the Determinants of the Exchange Rate

Sinn, Hans-Werner; Westermann, Frank - 2021

This paper reconsiders the determinants of the exchange rate by studying the historical episode after the fall of the Iron Curtain. Testing a modified portfolio balance model, we attribute the strength of the deutschmark in the early nineties and the puzzling decline of the euro during its...

Persistent link: https://www.econbiz.de/10013230968

Why a Funded Pension System is Useful and Why it is Not Useful

Sinn, Hans-Werner - 2021

Based on explicit present value calculations, the paper criticizes the view that the PAYGO system wastes economic resources. In present value terms, there is nothing to be gained from a transition to funded system even though the latter offers a permanently higher rate of return. The sum of the...

Persistent link: https://www.econbiz.de/10013210645

Unskilled Migration : A Burden or a Boon for the Welfare State

Razin, Assaf; Sadka, Efraim - 2021

In a static setup, migration of unskilled labor may be resisted by the entire native-born population because, being relatively low earners, migrants are net beneficiaries of the fiscal system. However, the paper shows that with a pay-as-you-go pension, an important pillar of the welfare state,...

Persistent link: https://www.econbiz.de/10013244737

The Pay-as-You-Go Pension System as a Fertility Insurance and Enforcement Device

Sinn, Hans-Werner - 2022

It is argued that a PAYGO system may have useful allocative functions in that it serves as an insurance against not having children and as an enforcement device for rotten kid' who are unwilling to pay their parents a pension. It is true that the system has amoral hazard effect in terms of...

Persistent link: https://www.econbiz.de/10014158127

Migration and Pension

Razin, Assaf; Sadka, Efraim - 2022

Migration has important implications for the financial soundness of the pension system, which is an important pillar of the welfare state. While it is common sense to expect that young migrants, even if low-skilled, can help society pay the benefits to the currently elderly, it may nevertheless...

Persistent link: https://www.econbiz.de/10013309210