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The International Dimension of an Incomplete Emu

Ioannou, Demosthenes - 2020

of the monetary union, have on the rest of the world. Disentangling euro area stress shocks and global risk aversion … area but also for the rest of the world. Notably, an increase in euro area stress entails a slowdown of economic activity … in the rest of the world, as well as a fall in imports/exports of both the euro area and the rest of the world. A …

Persistent link: https://www.econbiz.de/10012824791

Exchange Rate Anchoring - Is there Still a De Facto US Dollar Standard?

Bracke, Thierry - 2011

The paper provides a measure of exchange rate anchoring behavior across 149 emerging market and developing economies for the 1980-2010 period. An extension of the Frankel and Wei (2008) methodology is used to determine whether exchange rates are pegged or floating, and in the case of pegs, to...

Persistent link: https://www.econbiz.de/10013124257

Implications of Monetary Union for Catching-Up Member States

Sánchez, Marcelo - 2021

We examine the implications of monetary union for macroeconomic stabilisation in catching up participating countries. We allow member states' supply conditions to differ inside the union, especially with regard to sectoral characteristics. Sectoral productivity shocks on balance hamper the...

Persistent link: https://www.econbiz.de/10013317597

The euro’s trade effects

Baldwin, Richard E. - 2006

This paper reviews reassesses the methodology and principal findings of the “Rose effect”, i.e. the trade effects of currency union, looking at both EMU and non-EMU currency unions. The consensus estimate suggests that the euro has already boosted intra-euro area trade by five to ten...

Persistent link: https://www.econbiz.de/10011604640

An Alternative View of Exchange Market Pressure Episodes in Emerging Europe : An Analysis Using Extreme Value Theory (EVT)

Heinz, Frigyes Ferdinand - 2015

Using extreme value theory tools, we demonstrate that the distributions of the exchange market pressure (EMP) series for most of twelve emerging Europe countries have heavy tails, and disregarding their tail properties may lead to substantial underestimation of the probability of tail events....

Persistent link: https://www.econbiz.de/10013019633

Carry Trades and Monetary Conditions

Falconio, Andrea - 2021

This paper investigates the relation between monetary conditions and the excess returns arising from an investment strategy that consists of borrowing low-interest rate currencies and investing in currencies with high interest rates, so-called "carry trade". The results indicate that carry trade...

Persistent link: https://www.econbiz.de/10013315488

Carry Trades and Monetary Conditions

Falconio, Andrea - 2021

This paper investigates the relation between monetary conditions and the excess returns arising from currency carry trades. The results indicate that carry trade average return, Sharpe ratio and downside risk diﬀer substantially across monetary conditions before the onset of the ﬁnancial...

Persistent link: https://www.econbiz.de/10013310704

China's Dominance Hypothesis and the Emergence of a Tri-Polar Global Currency System

Fratzscher, Marcel - 2011

This paper assesses whether the international monetary system is already tripolar and centred around the US dollar, the euro and the Chinese renminbi (RMB). It focuses on what we call China's “dominance hypothesis”, i.e. whether the renminbi is already the dominant currency in Asia, exerting...

Persistent link: https://www.econbiz.de/10013119934

Exchange Rate Volatility and Growth in Small Open Economies at the EMU Periphery

Schnabl, Gunther - 2008

Since the introduction of the euro in January 1999, exchange rate stability at the periphery of the euro area is growing. The paper investigates the impact of exchange rate stability on growth for a sample of 41 mostly small open economies at the EMU periphery. It identifies international trade,...

Persistent link: https://www.econbiz.de/10012773503

On the Credit and Exchange Rate Channels of Central Bank Asset Purchases in a Monetary Union

Darracq Pariès, Matthieu - 2019

Through the euro area crisis, financial fragmentation across jurisdictions became a prime concern for the single monetary policy. The ECB broadened the scope of its instruments and enacted a series of non-standard measures to engineer an appropriate degree of policy accommodation. The...

Persistent link: https://www.econbiz.de/10012889467