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Countries in a monetary union can adjust to shocks either through internal or external mechanisms. We quantitatively assess for the European Union a number of relevant mechanisms suggested by Mundell’s optimal currency area theory, and compare them to the United States. For this purpose, we...
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-led trade war against China and its immediate consequences for China, the US and the EU. Although protectionism can never be … concentrated in sectors that are also key for the EU’s exports to China, with the exception of energy and agricultural products … for the US but also for the EU and the rest of the world. Against this background, this paper reviews the EU’s options in …
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We analyze the determinants of the inflation trends in ten Southeast European (SEE) countries. Global cost-related factors and euro area (EA) inflation developments play an important role in explaining inflation dynamics in SEE countries. Changes in world food and energy prices, together with...
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Financial supervision focuses on the aggregate (macroprudential) in addition to the individual (microprudential). But an agreed framework for measuring and addressing financial imbalances is lacking. We propose a holistic approach for the financial system as a whole, beyond banking. Building on...
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