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The aim of this paper is to assess the effectiveness of risk sharing mechanisms in the euro area and whether a … supranational fiscal risk sharing mechanism could insure countries against very severe downturns. Using an unbalanced panel of 15 … euro area countries over the period 1979-2010, the results of the paper show that: (i) the effectiveness of risk sharing …
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From 1995 to 2005, the average urban household saving rate in China rose by 7 percentage points, to ¼ of disposable income. We use household-level data to explain the postponing of consumption despite rapid income growth. Tracing cohorts over time indicates virtually no consumption smoothing...
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This 2009 Article IV Consultation focuses on euro area policies. The euro area remains in recession, with signs of improvement yet to evolve into a recovery. The large drop in financial wealth, an associated increase in private savings, tight financing conditions, and the adjustment of global...
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principle, financial globalization should enhance international risk sharing, reduce macroeconomic volatility, and foster …
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