Similar Search Results

Debt Rule Design in Theory and Practice : The SGP's Debt Benchmark Revisited

Hauptmeier, Sebastian - 2020

This paper is linked to two debates on fiscal policies: first, the implications of low interest-growth differentials for debt sustainability and, second, the reform of the EU fiscal governance framework. In both debates the choice of government debt anchor and the speed of adjustment take centre...

Persistent link: https://www.econbiz.de/10012840203

Current Account Reversals in Industrial Countries : Does the Exchange Rate Regime Matter?

Pancaro, Cosimo - 2013

This paper studies current account reversals in industrial countries across different exchange rate regimes. There are two major findings which have important implications for industrial economies with external imbalances: first, triggers of current account reversals differ between exchange rate...

Persistent link: https://www.econbiz.de/10013082531

Debt and Growth : New Evidence for the Euro Area

Baum, Anja - 2012

Against the background of the euro area sovereign debt crisis, our paper investigates the relationship between public debt and economic growth and adds to the existing literature in the following ways. First, we extend the threshold panel methodology by Hansen (1999) to a dynamic setting in...

Persistent link: https://www.econbiz.de/10013104431

The Impact of High and Growing Government Debt on Economic Growth : An Empirical Investigation for the Euro Area

Checherita-Westphal, Cristina; Rother, Philipp C. - 2021

This paper investigates the average impact of government debt on per-capita GDP growth in twelve euro area countries over a period of about 40 years starting in 1970. It finds a non-linear impact of debt on growth with a turning point — beyond which the government debt-to-GDP ratio has a...

Persistent link: https://www.econbiz.de/10013316176

Euro area monetary policy and TARGET balances: A trilogy

Eisenschmidt, Jens; Kedan, Danielle; Schmitz, Martin - 2022

The growth in TARGET balances after 2009 has given rise to intense academic and public debate. Our paper offers a systematic exposition of the necessary conditions for TARGET balances to emerge and provides a clear link to monetary policy. We show that large TARGET balances can only arise with...

Persistent link: https://www.econbiz.de/10014374337

Sovereign risk, interbank freezes, and aggregate fluctuations

Engler, Philipp; Grosse Steffen, Christoph - 2015

This paper studies the bank-sovereign link in a dynamic stochastic general equilibrium set-up with strategic default on public debt. Heterogeneous banks give rise to an interbank market where government bonds are used as collateral. A default penalty arises from a breakdown of interbank...

Persistent link: https://www.econbiz.de/10011605885

Multi-Layered Interbank Model For Assessing Systemic Risk

Montagna, Mattia - 2016

In this paper, we develop an agent-based multi-layered interbank network model based on a sample of large EU banks. The model allows for taking a more holistic approach to interbank contagion than is standard in the literature. A key finding of the paper is that there are material...

Persistent link: https://www.econbiz.de/10012984392

Sovereign Defaults in Court

Schumacher, Julian - 2018

For centuries, defaulting governments were immune from legal action by foreign creditors. This paper shows that this is no longer the case. Building a dataset covering four decades, we find that creditor lawsuits have become an increasingly common feature of sovereign debt markets. The legal...

Persistent link: https://www.econbiz.de/10012925866

The Implications of Liquidity Regulation for Monetary Policy Implementation and the Central Bank Balance Sheet Size : An Empirical Analysis of the Euro Area

Kedan, Danielle; Ventula Veghazy, Alexia - 2021

We analyse the impact of the Liquidity Coverage Ratio (LCR) on the demand for central bank reserves in the euro area with difference-in-differences estimation techniques. Using a novel dataset and an identification strategy that exploits the cross-country heterogeneity in the regulatory...

Persistent link: https://www.econbiz.de/10013243820

Bank Capital Structure and the Credit Channel of Central Bank Asset Purchases

Darracq Pariès, Matthieu - 2016

programme. We analyse the macroeconomic effects of the Asset Purchase Programme via the banking system, exploiting the cross … (2013), featuring a segmented banking sector, is estimated for the euro area and combined with a bank portfolio optimisation … lending conditions, which can vary significantly across jurisdictions and segments of the banking system …

Persistent link: https://www.econbiz.de/10012988604