This paper studies the effect of implementing fiscal rules on sovereign default risk and on the probability of large capital ow reversals for a large sample of countries including both developed and emerging market economies. Results indicate that fiscal rules are beneficial for macroeconomic...

The authors argue that the impact of the world financial crisis on Latin America was buffered by lower external private and public debt exposure and better macroeconomic fundamentals, which reduced the negative effects of turbulences on financial systems. Nevertheless, negative effects soon...

After the colossal financial crisis of 2008, many monetary policy analyses have shown the profound implications for financial stability of monetary policy in a liquidity trap. This paper investigates how monetary policy in a liquidity trap affects financial stability in a New Keynesian model...

Do fiscal rules help suppress sovereign spreads during periods of global financial stress Yes! This paper examines whether fiscal rules contribute to mitigating sovereign spreads in emerging markets and developing economies during periods of heightened financial and economic volatility...

Etliche Beobachter sind der Ansicht, dass der Euro die aktuelle Krise nicht überleben wird. Anders die Ökonomen Markus Brunnermeier und Jean-Pierre Landau, ein Deutscher und ein Franzose, sowie der britische Wirtschaftshistoriker Harold James. Sie sehen ein Kernproblem des Euro in den...

Analytical dialectics, rationality, and trust -- Law as credibility-basic traits -- The Eurozone : accession, exit, and expulsion-revisited -- The ECB and European monetary policy -- The European framework of financial regulation and supervision : towards a banking union -- The stability and...

This paper considers the primary challenges faced by the Eurozone and caused by the 2008+ crisis. It suggests that one should distinguish among institutional, conceptual (model/paradigm) and real economic challenges. As a factor that influences progress in other areas, the latter topic is a...