Cyprus's government has enhanced financial oversight and governance of public entities over the past decade. Several legal and administrative measures have been implemented to support the oversight functions of the Ministry of Finance and introduce elements of good governance and accountability...

Residential house prices in Cyprus show no signs of overvaluation in international comparison, and various indicators confirm that prices are aligned with economic fundamentals. However, still-high household debt poses a risk. Regional disparities raise some concerns about affordability, notably...

Inflation has risen sharply in Cyprus, initially driven by imported prices, but increasingly broadening to domestic prices. A Phillips Curve estimate attributes the high inflation largely to energy prices, external price pressures, and inflation expectations at the end of 2022. Historically high...

Despite a formal 'no-bailout clause,' we estimate significant net present value transfers from the European Union to Cyprus, Greece, Ireland, Portugal, and Spain, ranging from roughly 0.5% (Ireland) to a whopping 43% (Greece) of 2010 output during the Eurozone crisis. We propose a model to...

This Selected Issues paper discusses the causes and implications of elevated inflation in Cyprus and describes recent inflation trends. The paper also analyses drivers of inflation in with an augmented Phillips Curve and investigates how wages adjust to inflation. Estimating a pass-through from...

This 2023 Article IV Consultation discusses that Cyprus's economy has been resilient to the fallout from Russia's invasion of Ukraine. The outlook is uncertain with risks from an escalation of the war and a possible recession in Europe. Should inflation expectations rise further and the...

Das vorliegende Sammelwerk untersucht in zahlreichen Beiträgen die wirtschaftliche und politische Situation Südosteuropas. Im Mittelpunkt stehen dabei Fragen und Überlegungen zum EU-Beitritt. Es wird erörtert, welche Vor- und Nachteile die EU-Erweiterung sowohl für die neuen wie auch für...