Price undertakings are alternatives to imposing anti-dumping duties. In the past, almost half of EU anti-dumping measures were price undertakings. This has drastically changed in recent years. We identify four reasons for the decreasing relevance of price undertakings. First, prior to the...

This paper uses a simple open-economy macroeconomic framework to explore the implications of real exchange rate targeting for the behavior of real output, the domestic real interest rate, trade account, net foreign asset holdings, and the inflation rate. It finds that a more depreciated level of...

This paper investigates the large current account deficits observed in most new EU member states using an intertemporal model. The standard model is extended to include: (1) the persistence of current account positions and (2) the relevance of the fiscal balance. Specifically, a closed form...

We investigate the relationship between terms-of-trade shocks and the current account of a small open economy in the presence of imperfect competition and nominal price rigidities in the nontraded sector. We show that a temporary termsof- trade improvement results in a current account surplus...

The ongoing financial globalization has instigated growing concerns on the issue of benefits and costs from free international capital mobility. Past experiences in the emerging market countries indicate that foreign capital inflows could cause persistent current account deficits and lead to...

Even among academics, it is less known that Europe already witnessed a monetary unification project in the second part of the 19th century. The unification endeavours culminated in the creation of the Latin Monetary Union in 1865, which eventually failed. This paper compares the historical event...

This paper investigates possible options for generating revenue in international unions. The empirical evidence is found for three types of revenue-generating schemes: contributions, direct taxes, and the combination of two. Discussion of peculiarities, advantages and shortcomings of each scheme...

Massive intra-Asian economic integration has been accompanied by very little institution building. This paper considers whether Asia needs new institutions by drawing lessons from the EU’s supranational integration sequence and EFTA’s intergovernmental sequence. Sequencing theory is...

We consider some of the important economic constraints faced by landlocked economies in a game theoretic framework that involves its neighbor that has access to the ocean. We identify the strengths that the landlocked economy might have or develop through policy in order to negotiate with its...

The current instruments in the EU to deal with debt and liquidity crises include the European Financial Stability Facility (EFSF) and the European Financial Stabilisation Mechanism (EFSM). Both are temporary in nature (3 years). In terms of an efficient future crisis management framework one has...