Bobeica, Elena, Christodoulopoulou, Styliani, Tkačevs, Olegs, (2016), “The role of price and cost competitiveness for intra- and extra-euro area trade of euro area countries”, European Central Bank, Working Paper Series 1941, July Since restoring price competitiveness is usually regarded as essential in external rebalancing of euro area countries, we seek to uncover the impact of cost and price competitiveness on goods trade flows of individual euro area countries, distinguishing between trade within and outside …Read More
How competitiveness shocks affect macroeconomic performance across euro area countries
Staehr, Karsten, Vermeulen, Robert, (2016), “How competitiveness shocks affect macroeconomic performance across euro area countries “, European Central Bank, Working Paper Series 1940, July This paper contributes to the literature by empirically assessing the short-term effects of changes in competitiveness on broader macroeconomic performance, including GDP, credit growth and the current account balance. The shorter-term effects are the most immediate and noticeable effects of changes in competitiveness and they may therefore be of …Read More
Monetary Policy, Financial Conditions, and Financial Stability
Adrian, Tobias, Liang, Nellie, (2016), “Monetary Policy, Financial Conditions, and Financial Stability”,CEPR DP 11394, July We review a growing literature that incorporates endogenous risk premiums and risk taking in the conduct of monetary policy. Accommodative policy can create an inter-temporal tradeoff between improving current financial conditions at a cost of increasing future financial vulnerabilities. In the U.S., structural and cyclical macroprudential tools to reduce vulnerabilities at banks are being implemented, but may not …Read More
Library » EU » Economy » Scientific Articles
Structural reform support programme 2017-2020
Widuto, Agnieszka, (2016), “Structural reform support programme 2017-2020”, European Parliament, July Structural reforms have been identified as crucial to accelerating economic recovery, boosting growth and reducing unemployment. In November 2015, the European Commission proposed to establish the Structural Reform Support Programme 2017- 2020, to provide Member States with technical assistance in designing and implementing structural reforms, with a budget of €142.8 million taken from existing allocations to the structural and investment …Read More
Library » EU » Economy » Scientific Articles
Impact of the asset purchase programme on euro area government bond yields using market news
De Santis, Roberto A., (2016), “Impact of the asset purchase programme on euro area government bond yields using market news”, European Central Bank, Working Paper Series 1939, July The major central banks pursuing Quantitative Easing (QE) have bought large volumes of public and private assets with purchases carried out in several stages. The overall balance of evidence from the literature on QE is that central bank asset purchases have had a …Read More
Bond risk premia, macroeconomic factors and financial crisis in the euro area
Garcia, Juan Angel, Werner, Sebastian E. V., (2016), “Bond risk premia, macroeconomic factors and financial crisis in the euro area”, European Central Bank, Working Paper Series 1938, July Understanding the determinants of bond risk premia is increasingly important for both investors and policymakers. Among those potential determinants, macroeconomic risks are particularly relevant, and economic indeed theory suggests that investors should be compensated for exposures associated with economic fluctuations. In addition, sovereign bond market …Read More
The Return of Ireland’s Housing Bubble
Gerlach, Stefan, (2016), “The Return of Ireland’s Housing Bubble”, Project Syndicate, 14 July After having endured the collapse of its housing market less than a decade ago, Ireland has lately been experiencing a blistering recovery in prices, which already have risen in Dublin by some 50% from the trough in 2010. Is Ireland setting itself up for another devastating crash? Ιt’s no secret that the collapse of asset bubbles carries …Read More
Library » EU » Economy » Opinion Articles
Financing Vs. Spending Unions: How To Remedy The Euro Zone’s Original Sin
Palley, Thomas, (2016), “Financing Vs. Spending Unions: How To Remedy The Euro Zone’s Original Sin”, Social Europe, 14 July In economic policy, timing isn’t everything, it’s the only thing. The euro zone crisis has been evolving for over seven years, making it difficult to time policy proposals. Now, the shock of Brexit has created a definitive political opportunity for reforming rather than patching the euro. With that in mind, I …Read More
Library » EU » Economy » Opinion Articles
Sovereign and banking risk: Completing the union and breaking the loop
Navaretti, Giorgio Barba, Calzolari, Giacomo, Pozzolo, Alberto Franco, (2016), “Sovereign and banking risk: Completing the union and breaking the loop”, Voxeu, 15 July Eurozone countries are facing a stalemate in the completion of the Banking Union, at the heart of which is the regulation of banks’ sovereign exposures. This column introduces the latest issue of European Economy, which examines the interactions between banks and sovereign risk, the build up of sovereign risk during the crisis, …Read More
Library » EU » Economy » Opinion Articles
Common rules and new framework for securitisation
European Parliament, (2016), “Common rules and new framework for securitisation“, July In autumn 2015, the European Commission proposed, in the context of the Capital Markets Union initiative, a regulation on securitisation. The proposal followed a consultation with stakeholders and took into account initiatives at global (IOSCO) and European levels (EBA). The Commission’s aim is to restore investor confidence in securitisation transactions and contribute to reviving the real economy through increased …Read More