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Author: Ralph Setzer Publisher: ISBN: 9789279148934 Category : European Union countries Languages : en Pages : 30
Book Description
"In this paper we examine why monetary aggregates of euro area Member States have developed differently since the inception of the euro. We derive a money demand equation that incorporates housing wealth and collateral as well as substitution effects on real money holdings. Empirically, we show that cross-country differences in real balances are determined not only by income differences, a standard determinant of money demand, but also by house price developments. Higher house prices and higher user costs of housing are both associated with larger money holdings. Country-specific money holdings are also connected with structural features of the housing market."--Publication information page.
Author: Ralph Setzer Publisher: ISBN: 9789279148934 Category : European Union countries Languages : en Pages : 30
Book Description
"In this paper we examine why monetary aggregates of euro area Member States have developed differently since the inception of the euro. We derive a money demand equation that incorporates housing wealth and collateral as well as substitution effects on real money holdings. Empirically, we show that cross-country differences in real balances are determined not only by income differences, a standard determinant of money demand, but also by house price developments. Higher house prices and higher user costs of housing are both associated with larger money holdings. Country-specific money holdings are also connected with structural features of the housing market."--Publication information page.
Author: Ralph Setzer Publisher: ISBN: Category : Languages : en Pages : 44
Book Description
In this paper we examine why monetary aggregates of euro area Member States have developed differently since the inception of the euro. We derive a money demand equation that incorporates housing wealth and collateral as well as substitution effects on real money holdings. Empirically, we show that cross-country differences in real balances are determined not only by income differences, a standard determinant of money demand, but also by house price developments. Higher house prices and higher user costs of housing are both associated with larger money holdings. Country-specific money holdings are also connected with structural features of the housing market.
Author: Ms.Ruo Chen Publisher: International Monetary Fund ISBN: 1475512120 Category : Business & Economics Languages : en Pages : 76
Book Description
The paper examines the extent to which current account imbalances of euro area countries are related to intra-euro area factors and to external trade shocks. We argue that the traditional explanations for the rising imbalances are correct, but are incomplete. We uncover a large impact of declines in export competitiveness and asymmetric trade developments vis-à-vis the rest of the world –in particular vis-à-vis China, Central and Eastern Europe, and oil exporters- on the external balance of euro area debtor countries. While current account imbalances of euro area deficit countries vis-à-vis the rest of the world increased, they were financed mostly by intra-euro area capital inflows (in particular by the purchase of government and financial institutions’ securities, and cross-border interbank lending) which permitted external imbalances to grow over time.
Author: Eric Jondeau Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
In this paper, we investigate the sources of heterogeneity within the euro area. For this purpose, we build an optimization-based multi-country model (MCM) that allows different sources of heterogeneity across countries, both in terms of behavior of economic agents and in terms of asymmetry of shocks. Using Bayesian techniques, we estimate the MCM and several constrained versions of this model. We then test different sources of heterogeneity within the euro area. We show that the main source is the asymmetry of shocks affecting the different economies. In contrast, the heterogeneity of behaviors does not seem to be of empirical relevance for the euro area.
Author: Maximilian Brill Publisher: ISBN: Category : Languages : en Pages :
Book Description
We introduce a Divisia monetary aggregate for the euro area that accounts for the heterogeneity across member countries both, in terms of interest rates and the decomposition of monetary assets. In most of the euro area countries, the difference between the growth rates of the country-specific Divisia aggregate and its simple sum counterpart is particularly pronounced before recessions. The results obtained from a panel probit model confirm that the divergence between the Divisia and the simple sum aggregate has a significant predictive content for recessions in euro area countries.
Author: Sandra Eickmeier Publisher: ISBN: 9783865582065 Category : Languages : en Pages : 49
Book Description
This paper establishes stylized facts on comovements and heterogeneity of individual euro-area countries' output and price developments in the past two decades. For this purpose, a non-stationary structural dynamic factor model is fit to a dataset of euro-area macroeconomic variables. The main results are as follows. Common permanent factors are important in explaining individual countries' output and price developments in the euro area. Output and prices are not only hit by permanent common, but also by permanent idiosyncratic shocks. The latter are mainly responsible for cross-country heterogeneity during most of the sample. The asymmetric transmission of common shocks plays a minor role; there is no strong evidence that some common shocks lead to greater cross-country heterogeneity than others.
Author: Ralph Setzer
Author: Ralph Setzer
Author: Ralph Setzer
Author: Ralph Setzer
Author: European Central Bank
Author: Ms.Ruo Chen
Author: Eric Jondeau
Author: Maximilian Brill
Author: Matteo Ciccarelli
Author: Pablo Burriel
Author: Sandra Eickmeier