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 …

-linked swap (ILS) rates – a market-based measure of inflation expectations – to macroeconomic surprises in the euro area. Compared …Did the decline in inflation rates from 2012 to 2015 and the low levels of market-based inflation expectations lead to de …-anchored inflation dynamics in the euro area? This paper is the first time-varying event study to investigate the reaction of inflation …

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 …

Although recent research shows that the euro has spurred cross-border financial integration, the exact mechanisms … remain unknown. We investigate the underlying channels of the euro's effect on financial integration using data on bilateral … euro's impact on financial integration is primarily driven by eliminating the currency risk. Legislative …

In the paper we investigate the empirical features of euro area money market turbulence during the recent financial … market, following the BNP Paribas (9 August 2007) and the Lehman Brothers (16 September 2008) "shocks", and two additional …

casts doubts about the consequences of the Euro introduction for the European Single Market. Both indicators are estimated …This paper assesses the Euro's influence upon European trade by estimating two different indicators. The first is the … with its trade partners. This study of the Euro's influence by means of the Border Effect is a novelty in the literature …

EAGLE, a large-scale multi-country dynamic general equilibrium model of the euro area. Social contributions paid by firms … Portugal. Third, the trade balance improves when the fiscal devaluation is enacted also in the rest of the euro area, albeit to …

This paper provides evidence on whether the creation of the euro has changed the way global turbulences affect euro … area and other economies. Specifically, it considers the impact of global shocks on the competitiveness of individual euro … over 60 countries' real effective exchange rates, including those of the individual euro area economies, and compares …

This paper provides a comprehensive analysis of the interest rate pass-through of euro area monetary policy to retail … rates outside the euro area, contributing to the literature on the consequences of unofficial financial euroisation and on … all euro retail rates in euroised countries of central, eastern and south-eastern Europe (CESEE) are linked to the euro …

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 …