This paper deals with the question of whether the euro area Phillips curve is nonlinear. There has recently been a great deal of discussion and studies concerning the same question in the US context. The data set includes most of the euro area countries, namely Austria, Germany, Finland, France,...

Monetary and financial stability are of central importance to the effective functioning of a market economy. They provide the basis for rational decisionmaking about the allocation of real resources through time and therefore improve the climate for saving and investment.

This essay considers strategies that developing and emerging-market economies might use when seeking to exit from currency pegs. It also considers techniques for completing the move to greater flexibility, as well as the scope for adopting inflation targeting as a nominal anchor following an...

Credit channel as a channel of influence of financial factors on the real economy has been an intensive subject of both theoretical and empirical research during the last twenty years. Leena Morttinen's doctoral dissertation deals with several topics in this area. The first essay studies the...