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This paper studies the interaction of international shadow banking with monetary and macroprudential policy in a two-country currency union DSGE model. We find evidence that cross-country financial integration through the shadow banking system is a source of financial contagion in response to...
Persistent link: https://www.econbiz.de/10012224888
Reorganizing European fiscal policy is a main topic in current reform considerations. In particular, the creation of a European stabilization mechanism is being discussed. This study examines the macroeconomic effects of a stabilization fund, the economic consequences of which are analyzed in an...
Persistent link: https://www.econbiz.de/10011858306
We analyze the economic consequences of forming a monetary union among countries with varying degrees of financial distortions, which interact with the firms' pricing decisions because of customer-market considerations. In response to a financial shock, firms in financially weak countries (the...
Persistent link: https://www.econbiz.de/10011932300
Austria, Finland and Sweden became members of the EU in 1995. This paper examines how support for the euro and trust in …. Support for the euro in the two euroarea members Austria and Finland has remained high and relatively stable since the … physical introduction of the new currency nearly 20 years ago, while the euro crisis significantly reduced support for the euro …
Persistent link: https://www.econbiz.de/10012269193
Montenegro, which is one of the two countries that have unilaterally adopted the euro as the legal tender. Montenegro's limited … monetary policy options make the nature of business cycles important. The evidence presented here suggests that Montenegro has … a low degree of synchronization, limited structural similarity, and weak trade integration with the Eurozone. Moreover …
Persistent link: https://www.econbiz.de/10011861694
is described using a stochastic regime-switching model; second, the euro area governments’ responses to uncertain … macroeconomic policies in Greece are considered. The model's mechanism and assumptions allow either for a Grexit from the euro area … understand key drivers of the long-winded negotiations between the Syiza government and the euro area governments. …
Persistent link: https://www.econbiz.de/10011406792
In the 24 years since its introduction, the euro has experienced a financial crisis, a government debt crisis, a global …
Persistent link: https://www.econbiz.de/10014362756
pragmatic question in this context is: Did delegating monetary policy to the ECB increase stress in the individual euro area … countries? An SVAR analysis reveals that monetary stress has declined more in the euro area than in the euro areas’ doppelganger … euro becoming a dominant currency. …
Persistent link: https://www.econbiz.de/10012301359
between the countries that participated in the European Exchange Mechanism I and which are now members states of the Eurozone … cycles of the member states or it has acted as the monetary ground for the creation of a multi-speed Europe that includes … synchronisation of the cycles seems to become weaker since the adoption of the new currency. Especially for G6, the group of the …
Persistent link: https://www.econbiz.de/10013107833
The purpose of this paper is to examine the self-enforcing nature of business cycle synchronisation in the process of monetary integration. Application of value added concept for description of business cycle and as a indicator of total economic activity is also discussed in the paper
Persistent link: https://www.econbiz.de/10012903578