Policy Coherence for Development (PCD) is a priority for the European Commission and mechanisms and procedures to avoid contradictions and build synergies between different EU policies have continued to improve since the last PCD report of 2013. The 2015 report covers both cross-cutting and...

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...