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Trade Spillovers of Fiscal Policy in the European Union: A Panel Analysis

Beetsma, Roel; Giuliodori, Massimo; Klaassen, Franc - C.E.P.R. Discussion Papers - 2005

We explore the international spillovers from fiscal policy shocks via trade in Europe. A fiscal expansion stimulates domestic activity, which leads to more foreign exports and, hence, higher foreign output. To quantify this, we combine a panel VAR model in government spending, net taxes and GDP...

Persistent link: https://www.econbiz.de/10005114249

Coordination, Cooperation, Contagion and Currency Crises

Loisel, Olivier; Martin, Philippe - C.E.P.R. Discussion Papers - 1999

We analyse the effect of trade spillovers and of international coordination on currency crises. To do this, we present … and the larger the set of multiple equilibria. Coordination decreases the possibility of simultaneous self …-fulfilling speculative crises in the region and reduces the set of multiple equilibria. However, regional coordination, even though welfare …

Persistent link: https://www.econbiz.de/10005124321

Sovereign risk and belief-driven fluctuations in the euro area

Corsetti, Giancarlo; Kuester, Keith; Meier, André; … - C.E.P.R. Discussion Papers - 2013

Sovereign risk premia in several euro area countries have risen markedly since 2008, driving up credit spreads in the private sector as well. We propose a New Keynesian model of a two-region monetary union that accounts for this "sovereign risk channel." The model is calibrated to the euro area...

Persistent link: https://www.econbiz.de/10011084472

Two Naked Emperors? Concerns about the Stability and Growth Pact and Second Thoughts About Central Bank Independence

Buiter, Willem H. - C.E.P.R. Discussion Papers - 2003

restricted to E(M)U members. Poor communication, cooperation and coordination between the fiscal and monetary authorities can be … communication, cooperation or coordination. …

Persistent link: https://www.econbiz.de/10005662197

Monetary Policy In The Open Economy Revisited: Price Setting Rules And Exchange Rate Flexibility

Devereux, Michael B; Engel, Charles M - C.E.P.R. Discussion Papers - 2000

This paper develops a welfare-based model of monetary policy in an open economy. We focus on the extent to which monetary policy should be employed in maintaining the exchange rate. The traditional approach maintains that exchange rate flexibility is desirable in the presence of real...

Persistent link: https://www.econbiz.de/10005504222

National Insurance Against Unevenly Distributed Shocks in a European Monetary Union

Melitz, Jacques; Vori, Silvia - C.E.P.R. Discussion Papers - 1992

We examine proposals to introduce in the European Community national insurance against unevenly distributed shocks. This would operate differently from tax and government spending activities that now yield regional insurance within countries, since the latter are mainly designed for other...

Persistent link: https://www.econbiz.de/10005498081

The 'Sense and Nonsense of Maastricht' Revisited: What Have We Learnt About Stabilization In EMU?

Buiter, Willem H. - C.E.P.R. Discussion Papers - 2005

This paper revisits the paper 'Excessive deficits: sense and nonsense in the Treaty of Maastricht', co-authored with Giancarlo Corsetti and Nouriel Roubini and published during 2003 in Economic Policy. The first section of the paper addresses the problem that the exchange rate and inflation...

Persistent link: https://www.econbiz.de/10005498135

International Liquidity and Exchange Rate Dynamics

Gabaix, Xavier; Maggiori, Matteo - C.E.P.R. Discussion Papers - 2014

We provide a theory of the determination of exchange rates based on capital flows in imperfect financial markets. Capital flows drive exchange rates by altering the balance sheets of financiers that bear the risks resulting from international imbalances in the demand for financial assets. Such...

Persistent link: https://www.econbiz.de/10011083240

External Adjustment, Global Imbalances and Valuation Effects

Gourinchas, Pierre-Olivier; Rey, Hélène - C.E.P.R. Discussion Papers - 2013

We provide an overview of the recent developments of the literature on the determinants of long term capital flows, global imbalances and valuation effects. We present the main stylized facts of the new international financial landscape in which external balance sheets of countries have grown in...

Persistent link: https://www.econbiz.de/10011083349

Has the Euro changed the Business Cycle?

Enders, Zeno; Jung, Philip; Müller, Gernot - C.E.P.R. Discussion Papers - 2012

In contrast to the notion that the exchange-rate regime is non-neutral, there is little evidence that EMU has systematically changed the European business cycle. In fact, we find the volatility of macroeconomic variables largely unchanged before and after the introduction of the euro. Exceptions...

Persistent link: https://www.econbiz.de/10011084347