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The solution to the Feldstein-Horioka puzzle

Horioka, Charles; Ford, Nicholas - 2017

The purpose of this paper is to set out a surprisingly simple solution to the Feldstein-Horioka Puzzle or Paradox, which is that even though global financial markets appear to be integrated, levels of saving and investment are correlated across countries because financial markets cannot, by...

Persistent link: https://www.econbiz.de/10011756014

Financial integration in emerging Europe : an enviable development opportunity with tail risks

Iwulska, Aleksandra; Sugawara, Naotaka; Zalduendo, Juan - 2012

This paper draws on the experience of emerging Europe and argues that foreign capital is an enviable development … led to a buildup of vulnerabilities and now exposes emerging Europe to prolonged uncertainty and financial deleveraging … emerging Europe pursue a policy of self-insurance. Instead, what we refer to as an acyclical fiscal policy stance could serve …

Persistent link: https://www.econbiz.de/10009530221

Financial Integration in Emerging Europe : An Enviable Development Opportunity with Tail Risks

Iwulska, Aleksandra - 2012

Persistent link: https://www.econbiz.de/10013106857

Current accounts in Europe : implications of the external imbalances for the future of the common monetary policy

Gehringer, Agnieszka - 2012

The paper discusses the seriousness of current account imbalances in the last few decades in Europe, with a particular …

Persistent link: https://www.econbiz.de/10009505479

Equilibrium Exchange Rates in the New EU Members : External Imbalances vs. Real Convergence

Alberola, Enrique - 2007

New EU members share two very marked features which have conflicting implications for the evolution of their real exchange rates in the long run: accelerated growth and systematic current account imbalances, which would anticipate, respectively an appreciation and a depreciation of their...

Persistent link: https://www.econbiz.de/10012729819

Adjusting to the Euro

Fagan, Gabriel - 2007

In this paper we argue that, for a group of converging economies of the European Union, participation in the euro area has been associated with easier access to financing by domestic economic agents. Easier access to financing was a significant impulse leading to a sharp increase in households'...

Persistent link: https://www.econbiz.de/10012778006

Euro Adoption Amid Reshaping EMU : The Case of Romania

Pal, Rozalia - 2011

Adopting the European single currency is reevaluated amid changing environment of the existing euro area. In this paper we are mapping those divergences among member countries that challenge the optimal currency area (OCA), at least from a theoretical perspective. Nevertheless, the decision to...

Persistent link: https://www.econbiz.de/10014176002

A Currency Crisis in Europe? The Europe's Common Currency and the New Accession Countries

Krawczyk, Mariusz K. - 2004

The politically and legally complicated character of the EU Eastern Enlargement heavily influenced the conflict between the legal and economic rationality underlying the construction of the EMR-II. This makes the ERM-II vulnerable to currency crises and creates conditions for a widespread...

Persistent link: https://www.econbiz.de/10014071079

Current account adjustment and financial integration

Towbin, Pascal - 2008

The paper investigates whether higher financial integration leads in general to slower current account adjustments. The study estimates theoretically founded trade balance reaction functions for a panel of seventy countries from 1970-2004. The empirical analysis finds that adjustment in...

Persistent link: https://www.econbiz.de/10010316759

Trade, gravity and sudden stops : on how commercial trade can increase the stability of capital flows

Cavallo, Eduardo A. (contributor) - 2006

Financial stability is an important policy objective, since crises are associated with large economic, social and political costs. Promoting stability requires preventing "sudden stops" in capital flows, which are events in which foreign financing abruptly disappears. This paper contributes to...

Persistent link: https://www.econbiz.de/10003775779