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The implementation of a golden rule of public investment as a necessary institutional reform and an important step aimed at overcoming the constraints imposed by the new European Economic Governance are proposed. The rule is widely accepted in traditional public finance and can deliver both...
Persistent link: https://www.econbiz.de/10014363254
This article poses the question of whether monetary financing of public investment constitutes a viable way forward for the euro area. The problems of low inflation, high unemployment and public debts seem scarcely resolvable in an environment that is constrained by the virtual exhaustion of...
Persistent link: https://www.econbiz.de/10014363269
In a period of heightened concern about fiscal consolidation in the euro area a politically expedient way of controlling the public budget is to cut public investment. A critical question, however, is whether or not political expediency comes at a cost, in terms of both long-term economic...
Persistent link: https://www.econbiz.de/10005252279
real and nominal convergence remains largely incomplete, which requires a substantial strengthening of alternative …, euro adoption should speed up the convergence process. This Working Paper relates to the 2010 OECD Economic Survey of …'autant plus cruciales à l'approche de l'adoption de la monnaie unique que le processus de convergence réelle et nominale reste …
Persistent link: https://www.econbiz.de/10008461039
We study the convergence of European bond markets and the anchoring of inflation expectations in euro area countries …) has led to substantial convergence in euro area sovereign bond markets in terms of interest rate levels, unconditional …
Persistent link: https://www.econbiz.de/10011604863
In this paper we look at business cycles similarities between CEE countries and the euro area. Particularly, we uncover GDP-inflation cycles by adopting a trend-cycle decomposition model which allows the trend to be either stochastic or deterministic i.e. of the non-linear type. Once cyclical...
Persistent link: https://www.econbiz.de/10011605597
Euro area countries exhibited modest convergence prior to the financial crisis and diverged thereafter. Such divergence … countries. This might then explain in part the modest convergence and then divergence of euro area countries. …
Persistent link: https://www.econbiz.de/10011606320
last recession brought convergence to a halt. This paper asks, first, whether sigma-convergence is found when other … dimensions of inequality are taken into account, and second, whether the recent economic recovery led to renewed convergence. To … assess sigma-convergence, I estimate transnational inequality in the euro area (EA-13) using a decomposable multidimensional …
Persistent link: https://www.econbiz.de/10011984293
and timing of euro adoption. We investigate the real-nominal convergence nexus from the perspective of euro area entry. We … argue that the initial level of economic development as measured by per capita income and the speed of real convergence have …
Persistent link: https://www.econbiz.de/10010494388
Persistent link: https://www.econbiz.de/10010370394