We lay out an empirical and a theoretical model to analyze the effects of non-fundamental exchange rate volatility on … of the conditional exogenous exchange rate volatility on the conditional mean of the endogenous variables in our open … empirically. In the second part, we investigate the effect of non-fundamental exchange rate volatility in a stochastic open …

autarchic (i.e. fundamental) FX returns. The model is calibrated and tested on the Czech koruna/euro exchange rate in a setting … with seven Czech and euro area asset returns. …

have posted higher average growth and wider output fluctuations than the euro area and other EU countries. Second, a set of … different methodologies suggests that business cycles of accession countries have been less synchronised with the euro area than … than the euro area "peripherals" (Greece, Portugal and Ireland). Moreover, synchrony differed across countries. Some …

This paper estimates the factors underlying the volatility of the euro overnight interest rate and its transmission … along the euro area money market yield curve. A new multivariate unobserved components model is proposed allowing for both …'s operational framework for monetary policy implementation. Strong persistence is detected in all log-volatility processes and and …

Among the harmful effects of inflation, the negative consequences of inflation volatility are of particular concern … inflation volatility. Major results are robust for unconditional and conditional inflation volatility, the latter derived from … country-specific GARCH models, and across different data requencies, time periods and econometric methodologies. From a policy …

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 area the sources of instabilities in money demand were country …-specific. Second, financial innovation appears to have had a weaker impact on money demand in the euro area than in other economies. A …