We discuss the scope of asymmetries in growth and inflation developments in the euro area countries, taking the euro area as the natural benchmark since the establishment of EMU. We start with a descriptive analysis of a set of indicators that can give a first idea of the likelihood of or extent...

In this paper, we use a SVAR model in order to study the asymmetry of growth and inflation developments in the acceding countries vis-à-vis the euro area over the years 1995-2003. The model combines two strands of the literature, the explanation in terms of country-specific and euro area...

This paper provides an empirical evaluation of the Flexible Credit Line (FCL), the IMF's prime precautionary lending instrument since 2009 to which so far only three emerging market economies have subscribed: Mexico, Colombia and Poland. We consider both questions of selectivity and...

In the wake of the two longer-term refinancing operations with a maturity of three years conducted in December 2011 and February 2012, amounts placed on the Eurosystem’s deposit facility surged to unprecedented high levels of around € 800 billion. The article clarifies how this high recourse...

The current account balance has long been an established indicator of an economy's external vulnerability. Countries with a current account deficit and an accumulated net debt position are considered vulnerable to a reversal in capital flows (sudden stop) which could lead to a painful adjustment...

In the wake of the two longer-term refinancing operations with a maturity of three years conducted in December 2011 and February 2012, amounts placed on the Eurosystem’s deposit facility surged to unprecedented high levels of around € 800 billion. The article clarifies how this high recourse...

One of the most remarkable characteristics of the world economy today is the enormous, ever worsening US balance of payments current account deficit, which reached a record level of 5.7 p.c. of GDP in 2004. This has given rise to concerns in academic and political circles regarding the...