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A central puzzle in international finance is that real exchange rates are volatile and, in stark contradiction to … the international transmission of productivity improvements generate the observed degree of risk-sharing: one associated … transmission pattern, questioning the presumption that terms-of-trade movements foster international risk-pooling. …
Persistent link: https://www.econbiz.de/10009636531
In this note we demonstrate that in affine models for bilateral exchange rates, the nature of return interdependence during crises depends on the tail properties of the fundamentals' distributions. We denote crisis linkages as either strong or weak, in the sense that the dependence remains or...
Persistent link: https://www.econbiz.de/10009636547
The long-run determinants of euro area FDI to the United States during the period 1980-2001 are explained by employing the Tobin's Q-model of investment. By using the fixed effects panel estimator, stock market developments in the euro area countries - including a measure adjusted for economic...
Persistent link: https://www.econbiz.de/10009636552
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Based on a literature review, this paper investigates the reasons why broad money demand has usually been found to be more stable in the euro area than in other large economies. The paper concludes that there are three main explanations for this fact. First, in some countries outside the euro...
Persistent link: https://www.econbiz.de/10009635916
international equity transactions that accentuate the role of international risk sharing as a factor for the macroeconomic response … distributed and how they affect global consumption and current account positions. The results suggest that international spillover …
Persistent link: https://www.econbiz.de/10009635970
This paper analyzes cooperation between sovereign national authorities in the supervision and regulation of a multinational bank. We take a political economy approach to regulation and assume that supervisors maximize the welfare of their own country. The communication between the supervisors is...
Persistent link: https://www.econbiz.de/10009636539
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