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Average rates in the decentralized unsecured market for euro funds, like the EONIA for the overnight maturity, are fundamental indicators of the smooth transmission of the signal rate by the central bank. Public information plays an important role in this context, as key interest rates are set...
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We develop a theory of information spillovers in primary sovereign bond markets where governments raise funds from a common pool of competitive investors who may acquire information about default risk and later trade in secondary markets. Strategic complementarities in information acquisition...
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I analyze the Granger causality in distribution between sovereign bonds and industry indexes in the five European countries most affected by the debt crisis: Greece, Ireland, Italy, Portugal, and Spain. Prior research assessed the impact of the debt crisis on the financial firms, but its effect...
Persistent link: https://www.econbiz.de/10014352250
The view is widespread that there are just two options for the future of the Eurozone - either it is complemented by a fiscal union, or it will fall apart. In this paper, we discuss five possible elements of a fiscal union, of which three are in the centre of the current debate on fiscal union...
Persistent link: https://www.econbiz.de/10010331439
We assess the sustainability of public finances in the EU15 over the period 1970-2006 using stationarity and … policy was sustainable both for the EU15 panel set, and within subperiods (1970-1991 and 1992-2006). …
Persistent link: https://www.econbiz.de/10011604866
In this paper we provide a positive exercise on past business-cycle correlations and risk sharing in the European Union, and on the ability of insurance mechanisms and fiscal policies to smooth income fluctuations. The results suggest in particular that while some of the new Member States have...
Persistent link: https://www.econbiz.de/10011604890
opening, Austria's accession to the EU and its currency union, EU enlargement). With some of these steps occurring in parallel …, its effects have similarly overlapped. Eastern opening since 1989 and Austria's EU membership since 1995 (and its … some 100,000 to 150,000 new jobs. The EU enlargement of 2004 has similarly benefiting Austria more than other EU 15 …
Persistent link: https://www.econbiz.de/10011435199