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Austerity, Growth and Inflation. Remarks on the Eurozone's Unresolved Competitiveness Problem

Sinn, Hans-Werner - CESifo - 2013

counterproductive in the south and unnecessary in the north. The necessary realignment of relative goods prices and current account …

Persistent link: https://www.econbiz.de/10010877720

Exchange Rates Dynamics in a Target Zone – A Heterogeneous Expectations Approach

Bauer, Christian; Grauwe, Paul De; Reitz, Stefan - CESifo - 2007

The target zone model of Krugman (1991) has failed empirically. In this paper, we develop a model of the exchange rate with heterogeneous agents in a free floating and a target zone regime. We show that this simple model mimics the empirical puzzles of exchange rates: excessive volatility, fat...

Persistent link: https://www.econbiz.de/10005405760

Volatility of Exchange Rates in Selected New EU Members: Evidence from Daily Data

Fidrmuc, Jarko; Horváth, Roman - CESifo - 2007

We examine the daily exchange rate dynamics in selected new EU member states (Czech Republic, Hungary, Poland, Romania, and Slovakia) using GARCH and TARCH models between 1999 and 2006. Despite these countries adopted inflation targeting regime, they occasionally tried to manage their exchange...

Persistent link: https://www.econbiz.de/10005765724

Fiscal Divergence and Current Account Imbalances in Europe

Schnabl, Gunther; Wollmershäuser, Timo - CESifo - 2013

Since the breakdown of the Bretton Woods System diverging current account positions in Europe have prevailed. While the Southern and Western European countries have tended to run current account deficits, the current accounts of the Central and Northern European countries, in particular Germany,...

Persistent link: https://www.econbiz.de/10010877801

Exchange Rate Management in Emerging Markets: Intervention via an Electronic Limit Order Book

Melvin, Michael; Menkhoff, Lukas; Schmeling, Maik - CESifo - 2009

beliefs of market participants. We find for our sample that intervention increases exchange rate volatility (and spread) for … the next minutes but that intervention days show a lower degree of volatility (and spread) than non-intervention days. We … also show for intraday data that the price impact of interbank order flow is smaller on intervention days than on non-intervention …

Persistent link: https://www.econbiz.de/10004979392

Automating Exchange Rate Target Zones: Intervention via an Electronic Limit Order Book

Melvin, Michael; Menkhoff, Lukas; Schmeling, Maik - CESifo - 2008

This paper describes and analyzes “automated intervention” of a target zone. Unusually detailed information about the … order book allows studying intervention effects in a microstructure approach. We find in our sample that intervention … increases exchange rate volatility (and spread) for the next minutes but that intervention days show a lower degree of …

Persistent link: https://www.econbiz.de/10005181265

An Economic Theory of Foreign Interventions and Regime Change

Bonfatti, Roberto - 2011

I construct a theory of foreign interventions in which the preferences of the foreign country over alternative local groups are determined by each group's international economic ties. In equilibrium, the foreign country supports the group with which it has the strongest ties, since this is most...

Persistent link: https://www.econbiz.de/10013124181