This PDF is a selection from a published volume from... of Economic Research Volume Title: NBER International Seminar on Macroeconomics 2012
... of Norges Bank. For acknowledgments, sources of research support, and disclosure of the author’s material financial relationships, if any, please see http://www.nber.org/chapters ...
... of Norges Bank. For acknowledgments, sources of research support, and disclosure of the author’s material financial relationships, if any, please see http://www.nber.org/chapters ...
Debt in the eurozone - the sources and the possible consequences.
... Overconfidence in the self-adjusting ability of financial system led to underestimating the consequence of the accumulation of the debt and leverage which resulted from booming credit and assets prices (Galati at al. 2011). Irish, French, Spanish, and Italian banks aggressively expanded lending. Ire ...
... Overconfidence in the self-adjusting ability of financial system led to underestimating the consequence of the accumulation of the debt and leverage which resulted from booming credit and assets prices (Galati at al. 2011). Irish, French, Spanish, and Italian banks aggressively expanded lending. Ire ...
Banks` Sovereign Exposures and the Feedback Loop
... This is clearly shown by the example of Italy, where the debt to GDP ratio has risen by 33 percentage points since 2007. Back-of-the-envelope calculations show that if Italian real GDP had since grown at a similar rate as in the previous ten years and the deflator had risen in line with the euro ar ...
... This is clearly shown by the example of Italy, where the debt to GDP ratio has risen by 33 percentage points since 2007. Back-of-the-envelope calculations show that if Italian real GDP had since grown at a similar rate as in the previous ten years and the deflator had risen in line with the euro ar ...
December 2016 - Amundi Research Center
... infrastructure spending are planned, and that the impact on the budget deficit can be very high, with the usual consequences on long rates, public debt… and monetary policy. Among other areas of uncertainty is the temptation of protectionism: we know that candidate Trump “promised” to impose prohibi ...
... infrastructure spending are planned, and that the impact on the budget deficit can be very high, with the usual consequences on long rates, public debt… and monetary policy. Among other areas of uncertainty is the temptation of protectionism: we know that candidate Trump “promised” to impose prohibi ...
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... explained by the fact that its banks were affected particularly strongly by the crisis, since they held a large volume of government securities of troubled countries. By the end of 2009, French banks had invested 21 billion euros in Greek government bonds, whereas German banks had invested only 16 b ...
... explained by the fact that its banks were affected particularly strongly by the crisis, since they held a large volume of government securities of troubled countries. By the end of 2009, French banks had invested 21 billion euros in Greek government bonds, whereas German banks had invested only 16 b ...
Deficit hysteria redux? Why we should stop worrying
... and it spends by crediting bank deposits. Therefore, it can always service its debt, since tax and bond revenues are not required in order to spend. Thus, perpetual budget deficits are “sustainable.” Moreover, large (nondiscretionary) budget deficits almost always result from recessions because auto ...
... and it spends by crediting bank deposits. Therefore, it can always service its debt, since tax and bond revenues are not required in order to spend. Thus, perpetual budget deficits are “sustainable.” Moreover, large (nondiscretionary) budget deficits almost always result from recessions because auto ...
Diagnosis, Treatment, and Effects of the Crisis in Greece
... imposing emergency taxes to cope with crisis-driven decline in taxation, and socializing losses (ibid.: 245). As the crisis spread across the eurozone, rescue plans encompassed not only banks, which were being treated as the most important of social institutions, but also national economies, which w ...
... imposing emergency taxes to cope with crisis-driven decline in taxation, and socializing losses (ibid.: 245). As the crisis spread across the eurozone, rescue plans encompassed not only banks, which were being treated as the most important of social institutions, but also national economies, which w ...
Deficit Hysteria Redux - Levy Economics Institute of Bard College
... and it spends by crediting bank deposits. Therefore, it can always service its debt, since tax and bond revenues are not required in order to spend. Thus, perpetual budget deficits are “sustainable.” Moreover, large (nondiscretionary) budget deficits almost always result from recessions because auto ...
... and it spends by crediting bank deposits. Therefore, it can always service its debt, since tax and bond revenues are not required in order to spend. Thus, perpetual budget deficits are “sustainable.” Moreover, large (nondiscretionary) budget deficits almost always result from recessions because auto ...
The Euro`s Three Crises
... the liquidity crunch, and Gorton (2008) for a description of how bank and nonbank funding problems led to a bank run–like crunch in liquidity. Housing bubbles also emerged in a number of EU countries, leaving some euro-area banks exposed to their own real estate markets as well. 6. The EONIA swap i ...
... the liquidity crunch, and Gorton (2008) for a description of how bank and nonbank funding problems led to a bank run–like crunch in liquidity. Housing bubbles also emerged in a number of EU countries, leaving some euro-area banks exposed to their own real estate markets as well. 6. The EONIA swap i ...
The plan 1 provides a concrete mechanism to
... encourage the markets to innovate products with somewhat higher credit risk, and thus return. As the euro area economy recovers and interest rates move to `normal’ levels, such a yield curve will return to central importance and provide the foundation for `good’ securitisation of, say, packages of l ...
... encourage the markets to innovate products with somewhat higher credit risk, and thus return. As the euro area economy recovers and interest rates move to `normal’ levels, such a yield curve will return to central importance and provide the foundation for `good’ securitisation of, say, packages of l ...
Session 9 Government financing and debt
... funds to repay those who invested in earlier bonds). 2. Government bonds are attractive because they carry relatively low risk and high interest – which means that savers prefer them to bank deposits, where the savings would have been available for private investment. So private investment is ‘crowd ...
... funds to repay those who invested in earlier bonds). 2. Government bonds are attractive because they carry relatively low risk and high interest – which means that savers prefer them to bank deposits, where the savings would have been available for private investment. So private investment is ‘crowd ...
the full document - La Fondation Robert Schuman
... The Reform of the Global Financial Architecture The global financial crisis has led to a significant political mobilisation at the international level to prevent the crisis from turning as bad as the one in 1929. The latter evokes memories of fragmented and purely national responses which have exace ...
... The Reform of the Global Financial Architecture The global financial crisis has led to a significant political mobilisation at the international level to prevent the crisis from turning as bad as the one in 1929. The latter evokes memories of fragmented and purely national responses which have exace ...
Sustainable public finances in a turbulent EU economy
... Fiscal costs of financial the crisis Support to the banking system has focused on guarantees and liquidity measures EU public interventions in the banking sector (in % GDP) Capital injections ...
... Fiscal costs of financial the crisis Support to the banking system has focused on guarantees and liquidity measures EU public interventions in the banking sector (in % GDP) Capital injections ...
The Greek crisis - austerity measures as remedy or punitive action?
... “The Institutions”), a committee led by the European Commission with the International Monetary Fund and the European Central Bank. The Troika developed a rescue program to bailout the country for the approaching bankruptcy and to remodel the country’s economy so that it can pay back its pile of deb ...
... “The Institutions”), a committee led by the European Commission with the International Monetary Fund and the European Central Bank. The Troika developed a rescue program to bailout the country for the approaching bankruptcy and to remodel the country’s economy so that it can pay back its pile of deb ...
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... The present paper aims to contribute to this literature by assessing the short- to mediumterm effects of government debt accumulation on long-term interest rates in the case of euro area member states during the EMU period. It differs from previous studies in three ways. First, it adopts a dynamic m ...
... The present paper aims to contribute to this literature by assessing the short- to mediumterm effects of government debt accumulation on long-term interest rates in the case of euro area member states during the EMU period. It differs from previous studies in three ways. First, it adopts a dynamic m ...
Georgine K. Fogel, Salem International University
... economic shocks and future challenges of the EU. We discuss factors of macroeconomic stability and financial sustainability in the Euro region and evaluate the monetary and fiscal policies of the EU in regards to the effectiveness of the institutional framework for being able to facilitate endurance ...
... economic shocks and future challenges of the EU. We discuss factors of macroeconomic stability and financial sustainability in the Euro region and evaluate the monetary and fiscal policies of the EU in regards to the effectiveness of the institutional framework for being able to facilitate endurance ...
Lessons from Bretton Woods and from Czech history: A Czech view
... currency came under market pressures: Czech and Slovak entities transferred their deposits to Czech banks and capital flowed out of both countries ...
... currency came under market pressures: Czech and Slovak entities transferred their deposits to Czech banks and capital flowed out of both countries ...
Are bond net wealth Financialization and mainstream economics
... Introduction: the meaning of the Barro-Ricardo equivalence The test of science is prediction – and one should have some skepticism of a model that can’t predict the two biggest macroevents of the last 80 years - Stiglitz The crisis that, with ebb and flows, is plaguing world economy since 2007 has ...
... Introduction: the meaning of the Barro-Ricardo equivalence The test of science is prediction – and one should have some skepticism of a model that can’t predict the two biggest macroevents of the last 80 years - Stiglitz The crisis that, with ebb and flows, is plaguing world economy since 2007 has ...
Sovereign Debt and Debt Crises
... To default or not to default? • Let me start by saying that I am not (I repeat NOT) suggesting that countries should default more often • But I want to ask, why is there this disconnect between theory and reality? • The theory might be wrong • Or, they may be a problem with the world • My hunch is ...
... To default or not to default? • Let me start by saying that I am not (I repeat NOT) suggesting that countries should default more often • But I want to ask, why is there this disconnect between theory and reality? • The theory might be wrong • Or, they may be a problem with the world • My hunch is ...
Project to prepare a Database on Advanced Fiscal Vulnerability
... • Researchers interested in undertaking studies and analysis on public debt indicators and the Public Debt Committee with the aim to generate new official documents to be distributed among INTOSAI members on this matter. • It could also be used by SAIs as to identify similarities to other countries. ...
... • Researchers interested in undertaking studies and analysis on public debt indicators and the Public Debt Committee with the aim to generate new official documents to be distributed among INTOSAI members on this matter. • It could also be used by SAIs as to identify similarities to other countries. ...
Presentation
... Paid-out to date Cyprus (ESM) Spain (ESM) Portugal (EFSM, EFSF, IMF) Ireland (EFSM, EFSF, IMF) ...
... Paid-out to date Cyprus (ESM) Spain (ESM) Portugal (EFSM, EFSF, IMF) Ireland (EFSM, EFSF, IMF) ...
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... Paid-out to date Cyprus (ESM) Spain (ESM) Portugal (EFSM, EFSF, IMF) Ireland (EFSM, EFSF, IMF) ...
... Paid-out to date Cyprus (ESM) Spain (ESM) Portugal (EFSM, EFSF, IMF) Ireland (EFSM, EFSF, IMF) ...
International Monetary Fund The History of the IMF The Present IMF
... pro-rata repayments to all creditors. This rule was designed to prevent preferential treatment of particular creditors (or mistreatment of smaller ones), but it had the effect of making market-rate debt repurchases difficult and encouraging hold-out problems where one creditor could derail the entir ...
... pro-rata repayments to all creditors. This rule was designed to prevent preferential treatment of particular creditors (or mistreatment of smaller ones), but it had the effect of making market-rate debt repurchases difficult and encouraging hold-out problems where one creditor could derail the entir ...
Global Investment Strategy: Stocks likely to Post Modest Gains with
... U.K.: The outlook for U.K. Gilts remains positive. U.K. GDP growth is expected to rise a modest 0.1% in Q2 after relapsing into a recession in the past two quarters, but there are still risks that GDP growth is either flat or negative. The BoE has expanded asset purchase programs further in early Ju ...
... U.K.: The outlook for U.K. Gilts remains positive. U.K. GDP growth is expected to rise a modest 0.1% in Q2 after relapsing into a recession in the past two quarters, but there are still risks that GDP growth is either flat or negative. The BoE has expanded asset purchase programs further in early Ju ...
The European Central Bank: Lender of Last Resort in the
... In October 2008 the ECB discovered that there is more to central banking than price stability. This discovery occurred when the ECB was forced to massively increase liquidity to save the banking ...
... In October 2008 the ECB discovered that there is more to central banking than price stability. This discovery occurred when the ECB was forced to massively increase liquidity to save the banking ...
European debt crisis
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The European debt crisis (often also referred to as the Eurozone crisis or the European sovereign debt crisis) is a multi-year debt crisis that has been taking place in the European Union since the end of 2009. Several eurozone member states (Greece, Portugal, Ireland, Spain and Cyprus) were unable to repay or refinance their government debt or to bail out over-indebted banks under their national supervision without the assistance of third parties like other Eurozone countries, the European Central Bank (ECB), or the International Monetary Fund (IMF).The detailed causes of the debt crises varied. In several countries, private debts arising from a property bubble were transferred to sovereign debt as a result of banking system bailouts and government responses to slowing economies post-bubble. The structure of the eurozone as a currency union (i.e., one currency) without fiscal union (e.g., different tax and public pension rules) contributed to the crisis and limited the ability of European leaders to respond. European banks own a significant amount of sovereign debt, such that concerns regarding the solvency of banking systems or sovereigns are negatively reinforcing.As concerns intensified in early 2010 and thereafter, leading European nations implemented a series of financial support measures such as the European Financial Stability Facility (EFSF) and European Stability Mechanism (ESM). The ECB also contributed to solve the crisis by lowering interest rates and providing cheap loans of more than one trillion euro in order to maintain money flows between European banks. On 6 September 2012, the ECB calmed financial markets by announcing free unlimited support for all eurozone countries involved in a sovereign state bailout/precautionary programme from EFSF/ESM, through some yield lowering Outright Monetary Transactions (OMT).Return to economic growth and improved structural deficits enabled Ireland and Portugal to exit their bailout programmes in July 2014. Greece and Cyprus both managed to partly regain market access in 2014. Their bailout programme is scheduled to end in March 2016. Spain never officially received a bailout programme. It's rescue package from the ESM was earmarked for a bank recapitalization fund and did not include financial support for the government itself.The crisis had significant adverse economic effects and labour market effects, with unemployment rates in Greece and Spain reaching 27%, and was blamed for subdued economic growth, not only for the entire eurozone, but for the entire European Union. As such, it can be argued to have had a major political impact on the ruling governments in 9 out of 19 eurozone countries, contributing to power shifts in Greece, Ireland, France, Italy, Portugal, Spain, Slovenia, Slovakia, and the Netherlands.