This paper considers the nature and the distribution of trade and FDI effects of a potential enlargement of the European Monetary Union (EMU) to the 10 countries that obtained EU membership in 2004. One-way and two-way error component gravity models are estimated using a data set of unbalanced...

Das Problem eines möglichen Austritts aus einem Bundesstaat oder Staatenbund ist nicht neu. In der gegenwärtigen Krise steht dabei insbesondere der Aspekt 'Austritt aus einer Währungsunion' im Vordergrund. Vor noch nicht allzu langer Zeit war die Austrittsproblematik in Kanada von besonderer...

The main argument of this paper is that initiatives for regional cooperation - particularly related to short-term external financing: reserve sharing and trade-related payments systems - are promising avenues for policy efforts, in face of an international financial situation marked by...

This paper analyzes the logic of expansion of multinational corporations and their determinants in order to understand the dynamics and the main features of global flows of foreign direct investment (FDI) from the eighties. This is an analytical review of historical and theoretical approach that...

Unser wichtigstes Anliegen in dem vorliegenden Beitrag ist nicht die Prognose der zukünftigen Entwicklung der Europäischen Union, sondern die Erhellung der Optionen und Handlungsalternativen, vor denen die Union steht. Dazu gehört auch eine Diskussion der Frage, wie sie in die gegenwärtige...

This paper contributes to the understanding of the international financial linkages created by US banks by looking at the geographical composition and structure of the balance sheet of foreign branches. The empirical investigation, which is based on a novel dataset containing balance sheet...

Foreign exchange markets are the biggest financial markets on the globe, the dollar-euro market is the biggest among them with a daily turnover of $1.3 trillion. This market is the interface of the euro bloc and the dollar bloc which use mainly one of the major currencies, comprising 45-60% and...

We develop a simple model that highlights the costs and benefits of fixed exchange rates as they relate to trade, and show that negative export-price shocks reduce fiscal revenue and increase the likelihood of an expected currency devaluation. Using a new high-frequency data set on...

No empirical evidence has yet emerged for the existence of a robust positive relationship between financial openness and economic growth. This paper argues that a key reason for the elusive evidence is the presence of a time-varying relationship between openness and growth over time: countries...

We assess monetary convergence preceding the implementation of the European Monetary Union (EMU) through Kalman filtering estimates of the risk premium of eleven forward exchange rates of European and non-European currencies. Since all participating currencies are in effect identical from...