This article analyses the role of monetary shocks in transmitting macroeconomic fluctuations across countries within a two-country framework, with a special emphasis on the case of Romania. Based on the estimation results for various specifications of the European Central Bank reaction function,...

Understanding the evolution of volatility on the financial markets is essential for the comprehension and for the analysis of risk. This paper regards the topic of persistence of volatility in the exchange rates for four Central and Eastern European countries: Czech Republic, Hungary, Poland,...

This article proposes a different point of view on the pricing in the stochastic volatility models when the underlying price is uncorrelated with its volatility. Heston (1993) established a closed-form formula of the European option price. This paper proposes a new closed-form formula of the...

The financial crisis has revealed a series of weaknesses and gaps of the supervision of the financial system. The conclusions of the different reports aiming to discover the causes of the crisis, that were prepared by organizations and authorities with prerogatives in this field, were followed...

The recent financial crisis has proven just how expensive the process for the reestablishing of the financial stability and for restoring the public confidence in the banking system, actually is. Given its effects and the skepticism regarding the effectiveness of the supervisory systems of the...

Worldwide governments perform considerable financial efforts to support financial sector and the re-launch of lending. The mechanisms vary from the guarantee and purchase of troubled assets till injecting liquidity, by buying securities issued in order to increase financial institutions' equity....

The current financial crisis has reopened debate on the need to improve the regulatory and supervisory framework, both internationally and throughout Europe and led to calls for action from the authorities, aimed, on one hand, to strengthen supervision on financial institutions and, on the other...

Our study aimed to assess the degree of heterogeneity of the macroeconomic framework of the 27 EU member countries, against the background of turmoil manifested in the international financial markets. In this regard, we applied a hierarchical cluster analysis technique, for two moments of time,...

The current financial crisis is not a singular event in the history of crisis episodes. The essential difference between past episodes of financial turmoil and the actual crisis is the unprecedented severity, the pace of contagion and its global size. Financial markets have been seriously...