This report provides a current analysis of Member States’ progress towards meeting the ‘Barcelona targets’. It initially examines the progress towards reaching the Barcelona targets by comparing and then extending the results presented in 2008. However, it also extends the previous 2008...

This paper examine differences between risk-neutral and objective probability densities of future interest rates. The identification and quantification of these differences are important when risk-neutral densities (RNDs), such as option-implied RNDs, are used as indicators of actual beliefs of...

Two seemingly unconnected empirical results suggest an intriguing mechanism. First, economic integration helps harmonize prices internationally, with trade being the primary channel (Rogoff 1996, Goldberg and Knetter 1997). Second, monetary union may greatly increase the amount of trade among...