maintaining financial stability in the euro area by providing vast liquidity support to commercial banks that are operating in … centrifugal forces become that ultimately might break up the single currency. Instead of a fiscal union, a euro …

. Finally, after arguing that the ECB’s monetary policy which fruitfully combines past experience and current research is a …

Overall, the ECB managed monetary policy quite satisfactory in the first phase of EMU. Nevertheless, this paper asks …/2001. With a specific Taylor rule one can very well understand, how the ECB sets interest rates, but it turns out that monetary …

policy seems to follow the ECB's interest rates. On the other hand, spectacular Slovak economic growth is primarily driven by …

We study the convergence of European bond markets and the anchoring of inflation expectations in euro area countries …) has led to substantial convergence in euro area sovereign bond markets in terms of interest rate levels, unconditional … substantially across euro area countries and even been eliminated over time, thus underlining not only market integration but also …

for the euro area. The model incorporates various other features such as habit formation, costs of adjustment in capital … in the euro area. Using the estimated model, the paper also analyses the output (real interest rate) gap, defined as the …

developments in the euro area since the start of EMU. …

We model pre-euro Spanish monetary policy and use our findings to assess the compatibility of the interest rates set by … the ECB since 1999 with Spanish macrofundamentals. We find that in the 1990s Spain implemented successfully a monetary … strategy tailored to its own domestic fundamentals; and by abolishing it to join the euro she has paid a cost in the form of a …

state of the economy defines the monetary policy landscape. Using the euro area as laboratory this paper explores the design … simple interest rate rule is employed to interpret ECB policy since 1999. An evaluation of alternative policy rules across 11 … models of the euro area confirms the fragility of policy analysis optimized for any specific model and shows the merits of …