We analyze producer price developments in the transition from a national exchange rate regime to a monetary union. The focus is on the European Economic and Monetary Union (EMU). Stylized facts witness about an exploding gaps in producer-price inflation during the years immediately following the...

Real exchange and interest rates may still fluctuate inside the EMU and give rise to changes in competitiveness. We find, in contrast to what is generally expected, no convergence in these variables after the introduction of the euro. On the contrary, a divergence is found that is extraordinary...

In this paper, we investigate whether a firm’s composition of foreign liabilities matters for their resilience during economic turmoil and examine which characteristics determine a firm’s foreign capital structure. Using firm-level data, we corroborate previous findings from the...

The COVID-19 pandemic has resulted in an unprecedented shock to firms with adverse consequences for existing productive capacities. At the same time, digitalization has increasingly been touted as a key pathway for mitigating economic losses from the pandemic, and we expect firms facing digital...

Given that market capitalisation of listed public companies is roughly equal to the global GDP, even small changes in reporting practices may trigger profound economic implications. According to researchers, proper stock exchanges’ guidelines for ESG disclosures can help address the issues of...

Internal capital markets (ICMs) allow multinational enterprises (MNEs) to transfer liquidity globally, which connects external capital markets when the related entities also raise external funds. This paper studies such connection with a model of ICMs that permits two layers of agency problems:...