Global liquidity expansion has been very dynamic since 2001. Contrary to conventional wisdom, high money growth rates have not coincided with a concurrent rise in goods prices. At the same time, however, asset prices have increased sharply, significantly outpacing the subdued development in...

This paper investigates the relationship between global liquidity and asset prices on a global scale: how important is global liquidity? How are asset (especially house) prices and other important macro variables affected by global monetary conditions? This paper analyzes the international...

Global monetary dynamics has been particularly strong in recent years. At the same time, house prices in many OECD countries increased sharply, significantly outpacing the relatively subdued development in consumer prices. In this paper we argue that different price elasticities on asset and...

[eng] Exchange Rate Uncertainty and Unemployment in the Accession Countries : A Case for Euroization by Ansgar Belke and Ralph Setzer . The traditional “ optimum currency area ” approach posits that little is lost in the transition to a very hard peg to a currency union if exchange rate...

Traditional specifications of export equations incorporate foreign demand as a demand pull factor and the real exchange rate as a relative price variable. However, such standard export equations have failed to explain the export performance of euro area countries during the crisis period. In...

Traditional specifications of export equations incorporate foreign demand as a demand pull factor and the real exchange rate as a relative price variable. However, such standard export equations have failed to explain the export performance of euro area countries during the crisis period. In...

The official view of the European Commission for the Central and Eastern European Countries on their way to the euro is: first join the EU, then converge to the Maastricht criteria, then join the ECB. However, some CEES still aim at fixing their currencies to the euro. Why does the ECB oppose so...