Risk Sharing and Portfolio Allocation in EMU PDF Download

Author: Yuliya Demyanyk
Publisher:
ISBN:
Category : Equilibrium (Economics)
Languages : en
Pages : 72

View

Book Description
This paper develops a DSGE model for an open economy and estimates it on euro area data using Bayesian estimation techniques. The model features nominal and real frictions, as well as financial frictions in the form of liquidity constrained households. The model incorporates active monetary and fiscal policy rules (for government consumption, investment, transfers and wage taxes) and can be used to analyse the effectiveness of stabilisation policies. To capture the unit root character of macroeconomic time-series we allow for stochastic trend in TFP, but instead of filtering data prior to estimation, we estimate the model in growth rates and stationary nominal ratios.

Author: Björn Döhring
Publisher:
ISBN:
Category : European Economic Community countries
Languages : en
Pages : 72

View

Book Description
This paper assesses the implications of EMU for world macroeconomic and financial stability. After reviewing the predictions made by the literature, it looks at the evidence of the first ten years of EMU. In so doing, it distinguishes the effect of EMU from global factors at work since the 1980s, often referred to as zthe Great Moderationy. The paper concludes that EMU is on the whole having a stabilising effect on the world economy, particularly in neighbouring countries. By helping to stabilise interest rates, inflation and GDP growth in the euro area, EMU has contributed to greater stability of those variables in other advanced countries. There is also evidence that EMU is facilitating international risk sharing and consumption smoothing. Predictions that EMU would increase exchange rate volatility are, in general, not confirmed by the data. However, the amplitude of mediumterm exchange rate swings has increased for some currency pairs. Moreover, there is little evidence so far that EMU has facilitated international policy coordination, partly reflecting the still fragmented representation of the euro area in multilateral fora. -- EU Bookshop.

Author: Dariusz Adamski
Publisher: Cambridge University Press
ISBN: 1108383726
Category : Law
Languages : en
Pages : 518

View

Book Description
European economic integration has relied on policies intended to make the European Union strong and resilient economically, socially and politically. The Eurozone crisis and Brexit have demonstrated, however, how fragile this hope was and how contested reforms to the major European economic policies have become. Dariusz Adamski explains the evolution of these policies - from the Economic and Monetary Union to the internal market, international trade, the EU's climate policy, as well as its redistributive policies - and demonstrates how this evolution has made European economic integration increasingly frail. He shows how erroneous economic and political assumptions regarding the direction of the European integration project have interplayed with the EU's constitutional context. Arguing that flaws in individual policies contributing to European economic integration can be remedied in compliance with the existing constitutional setup, he explains why such solutions would be economically beneficial and politically feasible.

Author: Kpate Adjaouté
Publisher: Centre for Economic Policy Research
ISBN: 9781898128588
Category : Business & Economics
Languages : en
Pages : 78

View

Book Description
The advent of the euro is a significant event for portfolio managers, both within and outside the monetary union. The euro will affect portfolio decisions through a variety of channels and the emergence of a single currency marks the disappearance of explicit and psychological barriers to international investing. The set of investment opportunities qualifying as 'domestic' is expanding, while the need for diversification across currencies must now be met by an increased demand for assets which are not denominated in euros. This paper examines the principal factors influencing the portfolio reallocation process following the introduction of the euro. Three broad categories of possible portfolio allocation are considered: domestic versus non-domestic investment, debt versus equity investment, and public debt versus private debt investment.

Author: A. Verdun
Publisher: Springer
ISBN: 1137317361
Category : Political Science
Languages : en
Pages : 305

View

Book Description
By examining the various policy subfields of European economic integration such as agriculture, trade, banking, economic governance and sustainability this book offers a comprehensive and wide-ranging analysis of developments that have taken place in the past five years aimed at exploring the path of economic integration in Europe.

Author: Daniel Gros
Publisher: Rowman & Littlefield
ISBN: 1783485965
Category : Business & Economics
Languages : en
Pages : 101

View

Book Description
The Great Financial Crisis, which started in 2007-08, was originally called the ‘sub-prime’ crisis because its origins could be traced to excessive lending in the real estate sector in the US, concentrated mostly in sunbelt states like Nevada, Florida and California. There were similar pockets of excess lending for housing in Europe, notably in Ireland and Spain. But a key difference emerged later: in Ireland and Spain, the local banking systems almost collapsed and the governments experienced severe financial stress with large macroeconomic costs. Nothing similar happened in the US. The local financial system remained fully functional and the local governments did not experience increased financial stress in the states with the biggest real estate booms, like Nevada or Florida. This book illustrates how the structure of the US banking market and the existence of federal institutions allowed regional financial shocks to be absorbed at the federal level in the US, thus avoiding local financial crisis. The authors argue that the experience of the US shows the importance of a ‘banking union’ to avoid severe regional (national) financial dislocation in the wake of regional boom and bust cycles. They also discuss the extent to which the institutions of the partial banking union, now in the process of being created for the euro area, should be able to increase its capacity to deal with future regional boom and bust cycles, thereby stabilising the single currency.

Author: F. Arnaboldi
Publisher: Springer
ISBN: 1137390875
Category : Business & Economics
Languages : en
Pages : 247

View

Book Description
Arnaboldi highlights the importance of one of the three pillars of the Banking Union, the common mechanism for insuring deposits. She claims that integrated financial markets require a European solution with regard to deposit insurance and that the establishment of a pan-European scheme could address the problems for large cross-border banks.

Author:
Publisher:
ISBN:
Category : European Economic Community countries
Languages : en
Pages : 438

View

Book Description

Author: Giuseppe Bertola
Publisher:
ISBN:
Category : Fiscal policy
Languages : en
Pages : 52

View

Book Description
"This paper reviews theoretical and empirical aspects of the interaction between Europe's Economic and Monetary Union and recent labour market developments. Policies meant to increase and stabilize labour incomes also tend to reduce employment and productivity, theory suggests that the latter effects should be sharper and more relevant within an integrated market area, making it harder for National policy makers to address the consequences of financial and other market imperfections. Empirical patterns of policy and outcome indicators in member and non-member countries of EMU are consistent with that theoretical mechanism. In the data, tighter economic integration is associated with better employment performance, substantial deregulation, sharper disemployment effects of remaining regulatory differences, and somewhat higher inequality and larger private financial market volume."--Publication information page.

Author: Thomas Moser
Publisher: Springer Science & Business Media
ISBN: 1475751311
Category : Business & Economics
Languages : en
Pages : 324

View

Book Description
This book is based on the conference "EMU and the Outside World", held at the Swiss Federal Institute of Technology (ETH), December 11, 1998. The conference was organized by the Swiss Institute for Business Cycle Research (KOF), which is supported jointly by the ETH and the Swiss Society for Business Cycle Research (SGK), an organization comprising representatives from private industry, the Swiss National Bank and public authorities. On the eve of the final stage of European Economic and Mone tary Union (EMU), Zurich seemed to be a particularly appropriate place for such a conference. On the one hand, given its location and economic and financial links with the euro area, Switzerland is one of the "outside coun tries" most affected by EMU. On the other hand, it was nowhere else than in Zurich where the vision of "a United States of Europe" was expressed for the first time by Winston Churchill in his speech on September 19, 1946. For many EMU is a step in that direction, whether welcome or not. Most of the papers appearing in this volume were presented at the con ference and have been revised and updated. Three contributions, chapter 11- 13, were commissioned specially for this publication. Besides the authors of the chapters, special thanks are due to Guido Boller, Robert McCauley, Umberto Schwarz, and Charles Wyplosz.