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How far to go – and to remain – in the direction of highly expansionary monetary policy hinges on the balance of marginal benefits and costs of additional monetary easing and its expected evolution over time. This paper sketches a framework for assessing this balance and applies it to four...
Persistent link: https://www.econbiz.de/10010231107
During the first two years of monetary union, the euro's weakness surprised most market participants. Explanations proliferated ranging from fundamentals such as differences in growth prospects to psychological factors such as herd behaviour, but no single story fully accounts for the observed...
Persistent link: https://www.econbiz.de/10012446955
China is both a major trading partner of the United States and the largest official holder of U.S. assets in the world. The value of Chinese foreign exchange reserves peaked at just over $4 trillion in June 2014, but has since declined to $3.19 trillion as of August 2016. This very large decline...
Persistent link: https://www.econbiz.de/10011586659
This paper investigates the implications of international financial sanctions for the reserve currency status of the US dollar. We propose a simple model of a reserve currency, demonstrate how the anticipation of financial sanctions can weaken the dollar's status, and evaluate the welfare...
Persistent link: https://www.econbiz.de/10014247945
Germany’s substantial current account surpluses are an ongoing subject of debate, both at the domestic and the European … consumption expenditures of an ageing population. This contribution gauges the profitability of Germany’s foreign wealth. It … greater benefits of a domestic investment offensive aiming to equip Germany for central long-term challenges. …
Persistent link: https://www.econbiz.de/10009727590
Persistent link: https://www.econbiz.de/10012001998
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outcome of fiscal shocks is strongly related to debt levels. The Euro-area countries included in the investigation are Greece …, Ireland, Italy, the Netherlands, Spain, and Portugal, over the sample period 1999-2016, i.e., the EMU period. The main … (And Should) Germany Do It? Spillovers of German Fiscal Policies in the Euro Area -- 7 The labor market outcomes of …
Persistent link: https://www.econbiz.de/10012397755