Complementary currencies and deflationary crisis
... The principle of monetary superneutralisation Money plays an important role in our daily life. To accept money as payment is an accomplishment of the society which renders division of labour feasible and is therewith absolutely essential for modern life. Among others is it a medium of exchange and ...
... The principle of monetary superneutralisation Money plays an important role in our daily life. To accept money as payment is an accomplishment of the society which renders division of labour feasible and is therewith absolutely essential for modern life. Among others is it a medium of exchange and ...
The Uselessness of Monetary Sovereignty
... policy measures weigh on present situations. It may be the case that the public interprets a monetary expansion as the sign of a parlous underlying situation of the economy and will not be induced to invest or to spend, either because they think more monetary easing is on the way on the part of the ...
... policy measures weigh on present situations. It may be the case that the public interprets a monetary expansion as the sign of a parlous underlying situation of the economy and will not be induced to invest or to spend, either because they think more monetary easing is on the way on the part of the ...
Secular stagnation and the euro area
... recovered. The international economic and financial crisis has pushed down investment levels within the EU by about 15% from their peak in 2007. Even though the near-term prospects seem brighter, high unemployment persists in many Member States. Some experts argue that the euro area, alongside Japan ...
... recovered. The international economic and financial crisis has pushed down investment levels within the EU by about 15% from their peak in 2007. Even though the near-term prospects seem brighter, high unemployment persists in many Member States. Some experts argue that the euro area, alongside Japan ...
Opinion on limitations of cash payments (CON/2017/27)
... The ECB acknowledges that the draft law’s objectives of limiting the share of the shadow economy and combating tax evasion might, in general, constitute ‘public reasons’ justifying the establishment of limitations on cash payments. However, any limitation needs to comply with the legal tender status ...
... The ECB acknowledges that the draft law’s objectives of limiting the share of the shadow economy and combating tax evasion might, in general, constitute ‘public reasons’ justifying the establishment of limitations on cash payments. However, any limitation needs to comply with the legal tender status ...
Examining Eurozone Divergence - Sound Ideas
... allowed membership in the monetary union. Homogeneity was of the utmost importance because for a monetary union to function healthily, member states must have similar economic environments. The EMU also shares a single, independent central bank: the European Central Bank (ECB hereafter). The ECB has ...
... allowed membership in the monetary union. Homogeneity was of the utmost importance because for a monetary union to function healthily, member states must have similar economic environments. The EMU also shares a single, independent central bank: the European Central Bank (ECB hereafter). The ECB has ...
how interdependent are eastern european economies and
... process culminated in the accession of the Czech Republic, Cyprus, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia to the European Union (EU) on May 1, 2004. Bulgaria and Romania followed suit on January 1, 2007. Since then, six of these countries even managed to adopt the ...
... process culminated in the accession of the Czech Republic, Cyprus, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia to the European Union (EU) on May 1, 2004. Bulgaria and Romania followed suit on January 1, 2007. Since then, six of these countries even managed to adopt the ...
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... former being crowded out by the latter) and within the public sector itself. Countries with uncertain macroeconomic and fiscal perspectives are losing to those with a more solid credit reputation. However even those who were considered by financial markets as safe havens not so long time ago have no ...
... former being crowded out by the latter) and within the public sector itself. Countries with uncertain macroeconomic and fiscal perspectives are losing to those with a more solid credit reputation. However even those who were considered by financial markets as safe havens not so long time ago have no ...
European Commission
... fiscal policy, so that countries in a downturn can stimulate their economies through tax cuts and increased public expenditure, while countries experiencing economic overheating or financial bubbles increase taxation and reduce public expenditure. However, in today’s euro zone, the key problem is th ...
... fiscal policy, so that countries in a downturn can stimulate their economies through tax cuts and increased public expenditure, while countries experiencing economic overheating or financial bubbles increase taxation and reduce public expenditure. However, in today’s euro zone, the key problem is th ...
Development of a Worldwide Currency: Is it Feasible?
... getting the goods or services one needed and still is practiced in many parts of the world today. Through bartering however, there is no assurance that the values of the goods or services that are given up equal the values of the goods and services received. In addition there is no guarantee that th ...
... getting the goods or services one needed and still is practiced in many parts of the world today. Through bartering however, there is no assurance that the values of the goods or services that are given up equal the values of the goods and services received. In addition there is no guarantee that th ...
how to deal with macroeconomic imbalances?
... funds, etc.). These intermediaries have a strong ‘home bias’, or rather a bias towards investing in the euro area. For financial intermediaries, most regulations impose limits on investments outside the euro area or non-euro denominated. For small savers, investment in the home currency is always th ...
... funds, etc.). These intermediaries have a strong ‘home bias’, or rather a bias towards investing in the euro area. For financial intermediaries, most regulations impose limits on investments outside the euro area or non-euro denominated. For small savers, investment in the home currency is always th ...
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... rapid expansion of credit and an alarming run-up in asset prices. As the decade drew to a close, doubts grew about the resilience of this precariously balanced system. Today's international monetary system has produced similar conditions and concerns. A key difference between the two eras, however, ...
... rapid expansion of credit and an alarming run-up in asset prices. As the decade drew to a close, doubts grew about the resilience of this precariously balanced system. Today's international monetary system has produced similar conditions and concerns. A key difference between the two eras, however, ...
The Euro Area`s Exchange Rate Policy and the Experience with
... three categories of countries: EU countries which do not take part in ERM-II, EU countries which are part of ERM-II, and non-EU countries. First, consider EU countries which do not take part in ERM-II. As EU Member States, these countries are subject to the Treaty. And the Treaty is crystal clear: e ...
... three categories of countries: EU countries which do not take part in ERM-II, EU countries which are part of ERM-II, and non-EU countries. First, consider EU countries which do not take part in ERM-II. As EU Member States, these countries are subject to the Treaty. And the Treaty is crystal clear: e ...
-1- Draft: October 15, 2008 DOLLAR DOMINANCE, EURO
... with the management of money by a single national government. Though the bloc does have a central monetary agency, the European Central Bank (ECB), there is neither a common regulatory regime nor a unified fiscal authority to provide overall direction. As Jean-Claude Trichet, the ECB’s president, ha ...
... with the management of money by a single national government. Though the bloc does have a central monetary agency, the European Central Bank (ECB), there is neither a common regulatory regime nor a unified fiscal authority to provide overall direction. As Jean-Claude Trichet, the ECB’s president, ha ...
Draft: October 14, 2008 DOLLAR DOMINANCE, EURO ASPIRATIONS
... with the management of money by a single national government. Though the bloc does have a central monetary agency, the European Central Bank (ECB), there is neither a common regulatory regime nor a unified fiscal authority to provide overall direction. As Jean-Claude Trichet, the ECB’s president, ha ...
... with the management of money by a single national government. Though the bloc does have a central monetary agency, the European Central Bank (ECB), there is neither a common regulatory regime nor a unified fiscal authority to provide overall direction. As Jean-Claude Trichet, the ECB’s president, ha ...
ECB delivers - Bank of Ireland
... Inflation in the Euro Area and Ireland Inflation in the Euro Area has fallen steadily over the past couple of years to stand at 0.5% in May 2014, down from 2.4% in May 2012. The decline has been widespread across member states with 3 of the 18 countries in the zone recording negative inflation rates ...
... Inflation in the Euro Area and Ireland Inflation in the Euro Area has fallen steadily over the past couple of years to stand at 0.5% in May 2014, down from 2.4% in May 2012. The decline has been widespread across member states with 3 of the 18 countries in the zone recording negative inflation rates ...
Eurozone: ECB challenged by higher bond yields
... mandate to maintain price stability, meanwhile, has remained slow. From 2.0% last year, GDP growth in 1Q-3Q16 has slowed to 1.6% YoY. Authorities remain watchful of downside risks from Brexit developments, slower China/Emerging Market growth and potential protectionist trade policies out of the US. ...
... mandate to maintain price stability, meanwhile, has remained slow. From 2.0% last year, GDP growth in 1Q-3Q16 has slowed to 1.6% YoY. Authorities remain watchful of downside risks from Brexit developments, slower China/Emerging Market growth and potential protectionist trade policies out of the US. ...
Exchange-Rate Systems and Currency Crises
... • IMF principles for member nations: • No manipulation to prevent effective balance-ofpayments adjustments or unfair competitive gains • Act to counter short-term exchange market disorders • When members intervene in markets, they should take into account the interests of other members. • Exchange-r ...
... • IMF principles for member nations: • No manipulation to prevent effective balance-ofpayments adjustments or unfair competitive gains • Act to counter short-term exchange market disorders • When members intervene in markets, they should take into account the interests of other members. • Exchange-r ...
Inflation Targeting by the European Central Bank
... two years. The ECB has held its benchmark rate at a record low of 1 percent for almost two years, helping to haul the euro area out of recession. While the sovereign debt crisis is crimping growth in high- deficit nations, Germany’s economy is booming. Forecasters in an ECB survey this month raised ...
... two years. The ECB has held its benchmark rate at a record low of 1 percent for almost two years, helping to haul the euro area out of recession. While the sovereign debt crisis is crimping growth in high- deficit nations, Germany’s economy is booming. Forecasters in an ECB survey this month raised ...
Lesson
... • Deviations from the law of one price also occur in many EU markets. If EU markets were greatly integrated, then the (currencyadjusted) prices of goods and services should be nearly the same across markets. The price of the same BMW car varies 29.5% between British and Dutch markets. ...
... • Deviations from the law of one price also occur in many EU markets. If EU markets were greatly integrated, then the (currencyadjusted) prices of goods and services should be nearly the same across markets. The price of the same BMW car varies 29.5% between British and Dutch markets. ...
Mario Draghi: Unemployment in the euro area
... uncertainty, in particular in real time. For example, research by the European Commission suggests that estimates of the Non-Accelerating Wage Rate of Unemployment (NAWRU) in the current situation are likely to overstate the magnitude of unemployment linked to structural factors, notably in the coun ...
... uncertainty, in particular in real time. For example, research by the European Commission suggests that estimates of the Non-Accelerating Wage Rate of Unemployment (NAWRU) in the current situation are likely to overstate the magnitude of unemployment linked to structural factors, notably in the coun ...
Price and wage flexibility
... •In Mundell`s model we assumed two countries and one good which is traded across borders •In the reallity world this is more complex. A stable economy should not be dependent on one dominant activity. •If you have more diversified structure of your production and export, the probability of a severe ...
... •In Mundell`s model we assumed two countries and one good which is traded across borders •In the reallity world this is more complex. A stable economy should not be dependent on one dominant activity. •If you have more diversified structure of your production and export, the probability of a severe ...
The Future of the Dollar-Euro Exchange Rate, 2002
... The common European currency has had the potential of becoming a major international currency from the very beginning (Salvatore, 2000). This is so, because the euro area (1) is about as large an economic and trading unit as the United States; (2) has a large, well-developed, and growing financial m ...
... The common European currency has had the potential of becoming a major international currency from the very beginning (Salvatore, 2000). This is so, because the euro area (1) is about as large an economic and trading unit as the United States; (2) has a large, well-developed, and growing financial m ...
History of Exchange Rate Regimes
... For Example: 1,936.27 Italian lira = 1 euro; 1.95583 German marks = 1 euro, etc. These rates based on exchange rates between national currencies on January 1, 1999. ...
... For Example: 1,936.27 Italian lira = 1 euro; 1.95583 German marks = 1 euro, etc. These rates based on exchange rates between national currencies on January 1, 1999. ...
Foreign Exchange
... When G or T , then government develops a budget surplus This leads to a decrease in the demand for loanable funds or an increase in the supply of loanable funds, which results in r % . This change in r % leads to IG . In addition, the decrease in r% causes D$ and/or S$ as investors seek higher retur ...
... When G or T , then government develops a budget surplus This leads to a decrease in the demand for loanable funds or an increase in the supply of loanable funds, which results in r % . This change in r % leads to IG . In addition, the decrease in r% causes D$ and/or S$ as investors seek higher retur ...
Why Not a Global Currency?
... national price levels. Nothing could be further from the truth, and as virtually everyone knows by now, exchange rates fluctuate wildly in comparison with goods prices. Early in the flexiblerate experience, theorists offered what appeared to be an attractive answer to this observation: currency is a ...
... national price levels. Nothing could be further from the truth, and as virtually everyone knows by now, exchange rates fluctuate wildly in comparison with goods prices. Early in the flexiblerate experience, theorists offered what appeared to be an attractive answer to this observation: currency is a ...
Euro
The euro (sign: €; code: EUR) is the official currency of the eurozone, which consists of 19 of the 28 member states of the European Union: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. The currency is also officially used by the institutions of the European Union and four other European countries, as well as unilaterally by two others, and is consequently used daily by some 337 million Europeans as of 2015. Outside of Europe, a number of overseas territories of EU members also use the euro as their currency.Additionally, 210 million people worldwide as of 2013 use currencies pegged to the euro. The euro is the second largest reserve currency as well as the second most traded currency in the world after the United States dollar.As of August 2014, with more than €995,000,000,000 in circulation, the euro has the highest combined value of banknotes and coins in circulation in the world, having surpassed the U.S. dollar.Based on International Monetary Fund estimates of 2008 GDP and purchasing power parity among the various currencies, the eurozone is the second largest economy in the world.The name euro was officially adopted on 16 December 1995. The euro was introduced to world financial markets as an accounting currency on 1 January 1999, replacing the former European Currency Unit (ECU) at a ratio of 1:1 (US$1.1743). Physical euro coins and banknotes entered into circulation on 1 January 2002, making it the day-to-day operating currency of its original members. While the euro dropped subsequently to US$0.8252 within two years (26 October 2000), it has traded above the U.S. dollar since the end of 2002, peaking at US$1.6038 on 18 July 2008. Since late 2009, the euro has been immersed in the European sovereign-debt crisis which has led to the creation of the European Financial Stability Facility as well as other reforms aimed at stabilising the currency. In July 2012, the euro fell below US$1.21 for the first time in two years, following concerns raised over Greek debt and Spain's troubled banking sector. As of June 2015, the euro–dollar exchange rate stands at ~ US$1.10.