current account divergences between member states. This paper finds that divergences across euro-area countries are smaller …

This paper documents and analyzes crisis-related changes in government debt issuance practices in the 16 euro zone …

elevated risks, policymakers need to implement carefully-calibrated fiscal adjustments that ensure debt sustainability while …

during the Eurozone crisis. We propose a model to analyze and understand bailouts in a monetary union, and the large observed … bailout was to prevent an exit from the eurozone and possible contagion. Bailouts to avoid sovereign default were …

the convenience yield on European-wide safe assets, the EDMA could issue up to 15 percent of euro area GDP, helping to put … national debts on a sounder trajectory. The analysis suggests that, without mutualization, some euro area countries are likely …

This paper employs two established macroeconomic models to show that fiscal policy in the euro area can help monetary … third year across the euro area would ease the policy interest rate by 30-50 basis points relative to the baseline scenario … risks. In the current context of elevated inflation in all euro area economies, the findings suggest two key takeaways …

policy frameworks and the fiscal support in the U.S. and euro area during the pandemic. Moving from a previous target of … "below, but close to 2 percent" to a formal symmetric inflation targeting regime in the euro area or from flexible to average … in the U.S. and the euro area, and a slower withdrawal of fiscal support in the euro area, have a similar impact on …

We investigate the impact of remittances on public debt sustainability and detail how the traditional debt-to-GDP ratio … can be modified to create a more accurate representation of debt sustainability for a country that receives significant … remittance inflows. The main result is that inclusion of remittances into the traditional debt sustainability analysis alters the …

This paper critically reviews recent work regarding the sustainability of public debt. It argues that Debt … Sustainability Analyses (DSAs) should be more than mere mechanical simulation exercises. Instead, a DSA should be linked to some …