Showing 1 - 10 of 618
This paper addresses the puzzle of regime-dependent volatility in foreign exchange. We extend the literature in two ways. First, our microstructural model provides a qualitatively new explanation for the puzzle. Second, we test implications of our model using Europe's recent shift to rigidly...
Persistent link: https://www.econbiz.de/10012763111
This paper integrates exchange-rate policy into a model of exchange- rate behavior, and examines the data econometrically to infer hypotheses about policy behavior in the 1970s. The model shows how unanticipated movements in money, the current account, and relative price levels will cause first...
Persistent link: https://www.econbiz.de/10013310176
At a time of historic challenges to the viability of the Eurozone, we assess the contribution of the EU and the Euro to … between member countries whether or not members have also adopted the Euro. The Euro adoption as well as the anticipation of … the Euro adoption has minimal effects on market integration …
Persistent link: https://www.econbiz.de/10013135396
monetary union. The emergence of these problems just a dozen years after the start of the euro in 1999 was not an accident or …The creation of the euro should now be recognized as an experiment that has led to the sovereign debt crisis in several … exist in most Eurozone countries. Although the European Central Bank managed the euro in a way that achieved a low rate of …
Persistent link: https://www.econbiz.de/10013118129
Although recent research shows that the euro has spurred cross-border financial integration, the exact mechanisms … remain unknown. We investigate the underlying channels of the euro's effect on financial integration using data on bilateral … euro's impact on financial integration is primarily driven by eliminating the currency risk. Legislative …
Persistent link: https://www.econbiz.de/10013152591
This study grounds the establishment of EMU and the euro in the context of the history of international monetary … for a more expansive monetary policy. Such demands might arise in some parts or regions or countries of the euro area, but …
Persistent link: https://www.econbiz.de/10012772728
The accession countries to the euro area are increasingly binding their economic activity, external and internal, to … the euro area countries. One aspect of this phenomenon concerns the currency invoicing of international trade transactions … within exporter profitability. These considerations yield country-specific estimates about the degree of euro …
Persistent link: https://www.econbiz.de/10012783660
We use 633 days of tweets about the Euro/dollar exchange rate to determine their information content and the …
Persistent link: https://www.econbiz.de/10012959375
The paper provides and empirical characterization of fiscal policy in the euro area and in a group of twenty-two OECD … economies over the period from 1970 until 2007. Using the cyclically-adjusted fiscal balance we document that policy in the euro … policies. However, the component of the budget due to automatic stabilizers reacts stronger in the euro-area countries than in …
Persistent link: https://www.econbiz.de/10012757871
of American economists about the euro and the European Economic and Monetary Union on the tenth anniversary of the euro … of the euro was political, not economic and that the creation of the euro could lead to increased conflict within Europe …
Persistent link: https://www.econbiz.de/10012757919