Euroisation/dollarisation – the replacement of the domestic currency by a foreign currency, mostly the US dollar or the euro – has regained significant popularity in recent years, as it is generally regarded as a viable ‘corner solution’ for exchange rate regimes. Part of its...

The paper analyzes whether, and to what extent, emerging market economies (EMEs) have systemic importance for global financial markets, above and beyond their influence during crises episodes. Using a novel database of exogenous economic and political shocks for 14 systematically relevant EMEs,...

This paper sheds new light on the external and domestic dimension of China's exchange rate policy. It presents an open-economy model to analyse the macroeconomic adjustment process in China under both flexible and fixed exchange rate regimes. The model-based results indicate that persistent...

The Danish fiscal consolidation of the early 1980s has received much scholarly attention because it was followed by an expansion of demand and output. The expansion of private consumption so far has been attributed to the expectations of future lower tax burdens. This article analyzes the...