Regional currency areas and the use of foreign currencies
... fiscal policy. It is generally accepted that in RCAs uncoordinated fiscal policies may have adverse spillover effects. For example, overexpansionary deficits that lead to unsustainable debt accumulation in one country can lead to higher interest rates or exchange rate overvaluation in other members ...
... fiscal policy. It is generally accepted that in RCAs uncoordinated fiscal policies may have adverse spillover effects. For example, overexpansionary deficits that lead to unsustainable debt accumulation in one country can lead to higher interest rates or exchange rate overvaluation in other members ...
ANNUAL REPORT (July 1990 - December 1991) April 1992
... Concerns also apply to labour market developments. Nominal wages have continued to grow rapidly in the Community in 1991, increasing on average by more than 7%, in spite of generally weaker demand conditions and rising unemployment. ...
... Concerns also apply to labour market developments. Nominal wages have continued to grow rapidly in the Community in 1991, increasing on average by more than 7%, in spite of generally weaker demand conditions and rising unemployment. ...
DANIEL AMOAH_Feasibility Study of a Single Currency
... The formation of a Monetary Union by the West African Monetary Zone has been in pursuance for more than a decade. The WAMZ is made up of six countries in West Africa; The Gambia, Ghana, Guinea, Liberia, Nigeria and Sierra Leone. One significant benefit from using a common currency is the lower costs ...
... The formation of a Monetary Union by the West African Monetary Zone has been in pursuance for more than a decade. The WAMZ is made up of six countries in West Africa; The Gambia, Ghana, Guinea, Liberia, Nigeria and Sierra Leone. One significant benefit from using a common currency is the lower costs ...
WO R K I N G PA P... WHAT IS GLOBAL EXCESS LIQUIDITY, AND DOES IT MATTER?
... purged from, and not explainable by, the influence of current nominal spending and of a short-term interest rate – may be a proxy variable for yields which matter for aggregate demand and inflationary pressure.4 In the continuation, we are going to build on the hypothesis that a measure of excess mo ...
... purged from, and not explainable by, the influence of current nominal spending and of a short-term interest rate – may be a proxy variable for yields which matter for aggregate demand and inflationary pressure.4 In the continuation, we are going to build on the hypothesis that a measure of excess mo ...
P R I C E S TA B I L... W H Y I S I T I M P... F O R YO U ?
... the monetary policy of the ECB. Following a closer ...
... the monetary policy of the ECB. Following a closer ...
Zero lower bound: Is it a problem in the euro area?
... occasionally boost aggregate demand during sustained periods of deflation to prevent the economy from falling into a deflationary spiral. In the context of this study, such fiscal impetus is necessary because the model economies are not globally stable in the presence of shocks that are large enoug ...
... occasionally boost aggregate demand during sustained periods of deflation to prevent the economy from falling into a deflationary spiral. In the context of this study, such fiscal impetus is necessary because the model economies are not globally stable in the presence of shocks that are large enoug ...
B 09 2003 - Universität Mannheim
... The Eurosystem is the fifth decentralized system in the history of central banks. It consists of the European Central Bank (ECB) and twelve National Central Banks (NCBs) forming the European Monetary Union (EMU). The stark decentrality of this System is so little known that ubiquitous statements by ...
... The Eurosystem is the fifth decentralized system in the history of central banks. It consists of the European Central Bank (ECB) and twelve National Central Banks (NCBs) forming the European Monetary Union (EMU). The stark decentrality of this System is so little known that ubiquitous statements by ...
An exorbitant privilege? Implications of reserve
... Eurozone, the main reserve currency issuers may be increasingly disinclined to play a leadership role in terms of policy settings that are consistent with global exchange rate stability. Rather, our analysis suggests that we may continue to see an “unmanaged” reserve currency system in which the Uni ...
... Eurozone, the main reserve currency issuers may be increasingly disinclined to play a leadership role in terms of policy settings that are consistent with global exchange rate stability. Rather, our analysis suggests that we may continue to see an “unmanaged” reserve currency system in which the Uni ...
NBER WORKING PAPER SERIES NEGATIVE NOMINAL INTEREST RATES: Willem H. Buiter
... between a unit of the one-period safe non-monetary security denominated in terms of the numéraire and the currency/means of payment. That exchange rate can either be set by the government or be market-determined. This permits the nominal interest rate in terms of the numéraire to be negative, even t ...
... between a unit of the one-period safe non-monetary security denominated in terms of the numéraire and the currency/means of payment. That exchange rate can either be set by the government or be market-determined. This permits the nominal interest rate in terms of the numéraire to be negative, even t ...
Negative Nominal Interest Rates
... between a unit of the one-period safe non-monetary security denominated in terms of the numéraire and the currency/means of payment. That exchange rate can either be set by the government or be market-determined. This permits the nominal interest rate in terms of the numéraire to be negative, even t ...
... between a unit of the one-period safe non-monetary security denominated in terms of the numéraire and the currency/means of payment. That exchange rate can either be set by the government or be market-determined. This permits the nominal interest rate in terms of the numéraire to be negative, even t ...
Negative Nominal Interest Rates:Three ways to overcome the zero lower bound
... between a unit of the one-period safe non-monetary security denominated in terms of the numéraire and the currency/means of payment. That exchange rate can either be set by the government or be market-determined. This permits the nominal interest rate in terms of the numéraire to be negative, even t ...
... between a unit of the one-period safe non-monetary security denominated in terms of the numéraire and the currency/means of payment. That exchange rate can either be set by the government or be market-determined. This permits the nominal interest rate in terms of the numéraire to be negative, even t ...
The Maastricht Inflation Criterion: How Unpleasant Is Purgatory?
... inflation rate of the three European Union (EU) member states with the most stable prices— was designed in the early 1990s to bring such “high-inflation” countries as Italy and the United Kingdom in line with such “low-inflation” countries as Germany and the Netherlands prior to the introduction of ...
... inflation rate of the three European Union (EU) member states with the most stable prices— was designed in the early 1990s to bring such “high-inflation” countries as Italy and the United Kingdom in line with such “low-inflation” countries as Germany and the Netherlands prior to the introduction of ...
Monetary policy activism and interest rate smoothing:
... This paper investigates the interest-setting behaviour of three central banks, the Federal Reserve Board (FRB), the Bank of England (BoE) and the European Central Bank (ECB), with a view to identifying differences between them. It is well known that there are some important differences between the ...
... This paper investigates the interest-setting behaviour of three central banks, the Federal Reserve Board (FRB), the Bank of England (BoE) and the European Central Bank (ECB), with a view to identifying differences between them. It is well known that there are some important differences between the ...
Towards a Balanced Policy Mix under EMU: Co
... external trade than its individual member countries were before, a ‘small-openeconomy’ perspective becomes irrelevant and the interest rate cut appears to be an appropriate measure vis-à-vis the start of EMU.3 Third, the interest rate cut can best be understood by taking the business cycle stance in ...
... external trade than its individual member countries were before, a ‘small-openeconomy’ perspective becomes irrelevant and the interest rate cut appears to be an appropriate measure vis-à-vis the start of EMU.3 Third, the interest rate cut can best be understood by taking the business cycle stance in ...
Proposed Architecture for an ECOWAS Common Currency
... change in the arrangement between France and UEMOA members. Given the economic volatility of WAMZ countries and their relative size compared to current UEMOA countries; this may constitute an important challenge to overcome. Two considerations need to be addressed with respect to the effectiveness o ...
... change in the arrangement between France and UEMOA members. Given the economic volatility of WAMZ countries and their relative size compared to current UEMOA countries; this may constitute an important challenge to overcome. Two considerations need to be addressed with respect to the effectiveness o ...
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... 2. Quantifying communication by the ECB on its monetary policy strategy Researchers have highlighted three reasons why communication may prove useful for central banks. First and foremost, communication may be a very direct and effective tool to influence expectations. Therefore, it plays a seminal ...
... 2. Quantifying communication by the ECB on its monetary policy strategy Researchers have highlighted three reasons why communication may prove useful for central banks. First and foremost, communication may be a very direct and effective tool to influence expectations. Therefore, it plays a seminal ...
Net debt supply shocks in the euro area and the - ECB
... holdings by foreign official institutions, which are amongst the largest group of investors in euro area bond markets. For example, in Germany at the start of the APP in the second quarter of 2015, foreign central banks held around a third of the total outstanding German central government debt – by ...
... holdings by foreign official institutions, which are amongst the largest group of investors in euro area bond markets. For example, in Germany at the start of the APP in the second quarter of 2015, foreign central banks held around a third of the total outstanding German central government debt – by ...
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... See e.g. the EEAG Report on the European Economy (2012 and 2015) and EMU Public Finances (2014) published by CESifo and the European Commission respectively. Italy’s net foreign debt position, although sizeable in absolute terms, is not one of the worst in the euroarea. For instance, Greece, Portuga ...
... See e.g. the EEAG Report on the European Economy (2012 and 2015) and EMU Public Finances (2014) published by CESifo and the European Commission respectively. Italy’s net foreign debt position, although sizeable in absolute terms, is not one of the worst in the euroarea. For instance, Greece, Portuga ...
has no case
... The European Central Bank (ECB) is the eurozone’s primary institution. It sets monetary policy across Europe’s monetary union, preserves the common currency’s integrity, but also exercises inordinate power over member states – to the extent that it is within its remit to withdraw liquidity from a co ...
... The European Central Bank (ECB) is the eurozone’s primary institution. It sets monetary policy across Europe’s monetary union, preserves the common currency’s integrity, but also exercises inordinate power over member states – to the extent that it is within its remit to withdraw liquidity from a co ...
Small and medium-sized enterprises in the euro - ECB
... points, while that for German SMEs was around 100 basis points. Looking at developments over time, spreads remained substantially higher for SMEs in Italy and Spain than before the start of the financial crisis, although they have declined since the last quarter of 2012. Hence, the general economic ...
... points, while that for German SMEs was around 100 basis points. Looking at developments over time, spreads remained substantially higher for SMEs in Italy and Spain than before the start of the financial crisis, although they have declined since the last quarter of 2012. Hence, the general economic ...
Policy Contribution
... • Fully-fledged federations assign fiscal policy stabilisation largely to the federal level, based on a relatively large budget. In the euro area, a large federal budget is unrealistic at the current level of political and societal integration, and fiscal stabilisation will continue to rely mainly o ...
... • Fully-fledged federations assign fiscal policy stabilisation largely to the federal level, based on a relatively large budget. In the euro area, a large federal budget is unrealistic at the current level of political and societal integration, and fiscal stabilisation will continue to rely mainly o ...
The Creation of the Euro and the Role of the Dollar
... priced in dollars on world exchanges. Central banks and governments hold the bulk of their foreign exchange reserves in dollars. In addition, in some countries dollars are accepted for making transactions as readily as (if not more so than) the domestic currency. On January 1, 1999, a new currency—t ...
... priced in dollars on world exchanges. Central banks and governments hold the bulk of their foreign exchange reserves in dollars. In addition, in some countries dollars are accepted for making transactions as readily as (if not more so than) the domestic currency. On January 1, 1999, a new currency—t ...
1 9 9 8 - 03, July The International Role of the Euro Agnès Bénassy
... international currency. Secondly, the monetary policy of EMU members will involve a major institutional shift which could affect the behaviour of the trans-Atlantic exchange rate. Finally, the emergence of the euro as an international currency, together with institutional changes and with the strong ...
... international currency. Secondly, the monetary policy of EMU members will involve a major institutional shift which could affect the behaviour of the trans-Atlantic exchange rate. Finally, the emergence of the euro as an international currency, together with institutional changes and with the strong ...
Eurozone
The eurozone (About this sound pronunciation ), officially called the euro area, is a monetary union of 19 of the 28 European Union (EU) member states which have adopted the euro (€) as their common currency and sole legal tender. The other nine members of the European Union continue to use their own national currencies.The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. Other EU states (except for Denmark and the United Kingdom) are obliged to join once they meet the criteria to do so. No state has left, and there are no provisions to do so or to be expelled. Andorra, Monaco, San Marino, and Vatican City have formal agreements with the EU to use the euro as their official currency and issue their own coins. Kosovo and Montenegro have adopted the euro unilaterally, but these countries do not officially form part of the eurozone and do not have representation in the European Central Bank (ECB) or in the Eurogroup.The ECB, which is governed by a president and a board of the heads of national central banks, sets the monetary policy of the zone. The principal task of the ECB is to keep inflation under control. Though there is no common representation, governance or fiscal policy for the currency union, some co-operation does take place through the Eurogroup, which makes political decisions regarding the eurozone and the euro. The Eurogroup is composed of the finance ministers of eurozone states, but in emergencies, national leaders also form the Eurogroup.Since the financial crisis of 2007–08, the eurozone has established and used provisions for granting emergency loans to member states in return for the enactment of economic reforms. The eurozone has also enacted some limited fiscal integration, for example in peer review of each other's national budgets. The issue is political and in a state of flux in terms of what further provisions will be agreed for eurozone reform.