The objective of this study is to examine recent developments in trade and FDI flows between the EU and the CEEC, trying to anticipate future consequences from the economic integration of the two blocks. Economic theory suggests that integration conveys positive effects upon welfare, due to the...

Such an exceptional event as the creation of the EMU and the euro has not had happened never before. The most common challenges concerning EMU and the euro are: fiscal policy making, monetary policy making, euro area being a non-optimal currency area and the political legitimacy of EMU. It is...

There has been much talk in the popular press about the difficulty of attaining credibility in the bond markets for the low-inflation policies that have been adopted by a number of central banks in recent years. This credibility problem is particularly severe for those countries that have a...

In this paper we extract the factors that shape the yield curve and we relate them with macroeconomy. We examine whether the term structure can predict future economic activity by applying a range of econometric approaches both in pre- and post- crisis periods. Furthermore, we assess the...

In this paper we adopt a Bayesian approach towards the estimation of the monetary policy preference parameters in a general equilibrium framework. We start from the model presented by Smets and Wouters (2003) for the euro area where, in the original set up, monetary policy behaviour is described...

Many scholars have fought valiantly to change perceptions on the process of money creation. However, misconceptions remain in place some quarters. In order to demonstrate empirically that a new bank loan creates a new bank deposit (without the bank having to recruit a new deposit), the author...

We estimate the Smets and Wouters (2007) model augmented with the Gertler and Karadi (2011) financial intermediation sector on US data by using real and financial observables. Given the framework of the estimated model, we address the question whether and how standard monetary policy should...

The natural rate of interest, often interpreted as the equilibrium real interest rate, serves as a critical benchmark for evaluating the stance of monetary policy. This paper investigates the natural rate of interest in Uzbekistan using three econometric approaches: the HLW-type model1 , a...

This article presents the results of a comprehensive cross-country analysis of central banks' reaction functions in eighteen emerging economies from 2000Q1 to 2017Q4. Utilizing quarterly panel data, the study employs the generalized method of moments (GMM) alongside pooled OLS and fixed-effects...