In this paper we argue that, for a group of converging economies of the European Union, participation in the euro area …

traditional portfolio objectives as debt to reserve ratios decrease. We empirically estimate optimal dollar and euro shares for 24 … reserve ratios, introducing transactions demand has a elatively modest effect. We also find that euro and dollar bonds act as … sudden stops in Asia and Latin America, while the euro is a better hedge for sudden stops in Emerging Europe. We reproduce …

How sizable is the wealth effect on consumption in euro area countries? To address this question, we use newly … available harmonized euro area wealth data and the methodology in Carroll et al. (2011b). We find that the marginal propensity … to consume out of total wealth averaged across the largest euro area economies is around 3 cents per euro, with a …

In this paper we investigate the impact of the euro integration process on the drivers of FDI inflows. We show … bilateral gravity models of FDI inflows into euro area countries, we show that the euro facilitates intra-euro area vertical FDI … countries located outside the monetary union increase. Such flows are however not more likely be directed towards euro area …

This paper examines the degree of fragmentation in the Euro overnight unsecured money market during the period June …

We estimate the shoe-leather costs of inflation in the euro area using monetary data adjusted for holdings of euro … anticipated inflation. We conclude that, despite the increased circulation of euro banknotes abroad, in the euro area the …

prospective membership of the EU plays a decisive role in the choice of the euro as invoicing currency. The role of the euro as … differentiation favour vehicle pricing in U.S. dollar. An increase of euro invoicing due to higher exchange rate volatility supports … the role of the euro as vehicle currency, however. High market power defined as the share of a country's total exports to …

Since the introduction of the euro in January 1999, exchange rate stability at the periphery of the euro area is …

We propose a new and time-varying optimum currency area (OCA) index for the euro area in assessing the evolution of the … autoregression (VAR) model. We argue that the euro area is more appropriate through the lens of empirical OCA properties when the … relative importance of common symmetric shocks is high, but, at the same time, is not overly dispersed across euro area member …

This paper is an event study focusing on the global effects of the euro debt crisis in 2010-2013. After identifying 18 … advanced and 13 emerging countries. The main effect of euro debt crisis events is a rise in global risk aversion accompanied by …