This paper examines the cyclical behaviour of country-level macro-financial variables under EMU. Monetary union strengthened the covariation pattern between the output cycle and the financial cycle, while macro-financial policies at national and area-wide levels were insuffciently...

We examine the bilateral composition of international bond portfolios for the euro area and the individual EMU member countries. We find considerable support for euro area biasʺ: EMU member countries disproportionately invest in one another relative to other country pairs. Another striking...

We examine the bilateral composition of international bond portfolios for the euro area and the individual EMU member countries. We find considerable support for euro area bias: EMU member countries disproportionately invest in one another relative to other country pairs. Another striking...

This paper describes the dynamics of the external positions of euro area countries since the formation of EMU. While external imbalances have been the main focus in recent times, current account balances can only be properly interpreted in the context of understanding the overall international...