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Persistent link: https://www.econbiz.de/10000646179
The synchronized disinflation across Europe since end-2011 raises the question of whether non-euro area EU countries are affected by the undershooting of the euro area inflation target. To shed light on this issue, we estimate an open-economy, New Keynsian Phillips curve, in which we control for...
Persistent link: https://www.econbiz.de/10010959481
Monetary and fiscal policies face huge challenges: the banking sector has collapsed; the economy is in the midst of a deep recession; the exchange rate has plunged; capital flows have been frozen; inflation is elevated; public debt has risen; source of revenues have disappeared; social needs have...
Persistent link: https://www.econbiz.de/10008498025
This paper proposes a new monetary policy framework for effectively navigating the path to adopting the euro. The proposed policy is based on relative inflation forecast targeting and incorporates an ancillary target of declining exchange rate risk, which is suggested as a key criterion for...
Persistent link: https://www.econbiz.de/10005412757
This paper discusses comovement between inflation and output in the euro area. The strength of the comovement may not be apparent at first sight, but is clear at business cycle frequencies. Our results suggest that at business cycle frequency, the output and core inflation comovement is high and...
Persistent link: https://www.econbiz.de/10011242325
converging to a common currency system, in particular, by the eurozone candidate countries. The analytical framework assumes an …, in this case, is the eurozone’s inflation forecast. The study advances a forward-looking money growth model that might be … applied to aid monetary convergence to the eurozone. However, feasibility of adopting money growth rules depends on stable …
Persistent link: https://www.econbiz.de/10005076831
Persistent link: https://www.econbiz.de/10002094561
-monetary policy mix in the EMU and that it may complicate some aspects of the economic policy governance in the Eurozone. …
Persistent link: https://www.econbiz.de/10010857965
This study examines the nature of interdependence, and return and volatility spillovers, for three Indian exchange rates: US dollar (USD), Euro and British Pound. We use the spillover index methodology of Diebold and Yilmaz (2009) to analyse precisely and independently the returns and volatility...
Persistent link: https://www.econbiz.de/10009352440
The current global financial crisis involves a wide range of situations in which economies, financial institutions, and assets have lost a substantial portion of their value. Banking panics, financial crisis associated with financial bubbles' bursts, sovereign debt defaults, and currency crisis...
Persistent link: https://www.econbiz.de/10010669161