Using national account data, we define corporate balance sheet adjustment episodes as periods during which major increases in non-financial corporations’ net lending/borrowing are experienced. An analysis of such episodes in Germany and Japan, and a more systematic exploration of a sample of...

We disentangle different driving factors of sovereign bond market integration by studying yield co-movements of EMU countries, the UK, the US and 16 German states (Länder) since 1992. At a low frequency bond market integration has increased gradually in the course of the last 15 years in EMU...

Fiscal rules, such as the Excessive Deficit Procedure and the Stability and Growth Pact (SGP), aim at constraining government behavior. Milesi-Ferretti (2003) develops a model in which governments circumvent such rules by reverting to creative accounting. The amount of this depends on the...

Conventional money demand specifications in the euro area have become unstable since 2001. We specify a money demand equation in deviations of individual euro area Member States variables from the euro area average and show that the income elasticity as well as the interest rate semi-elasticity...

Using national account data, we define corporate balance sheet adjustment episodes as periods during which major increases in non-financial corporations' net lending/borrowing are experienced. An analysis of such episodes in Germany and Japan, and a more systematic exploration of a sample of 30...

This paper analyses the interactions between household wealth, mortgage decisions and savings in a single empirical framework and identifies an important role for a "down-payment channel" in the euro area. Contrary to the traditional housing wealth channel, the "down-payment channel" posits a...

â?¢ Capital Markets Union (CMU) is a welcome initiative. It could augment economic risk sharing, set the right conditions for more dynamic development of risk capital for high-growth firms and improve choices and returns for savers. This offers major potential for benefits in terms of jobs,...

The new EU leadership â?? the president of the European Commission and his team of commissioners, and the presidents of the European Council and of the European Parliament â?? will have to address pressing challenges. Go to eu2do.bruegel.org to read all the Memos, download the individual Memos...

Shifts in global economic dominance are by nature tectonic and never precipitated by single events. The Great Recession of 2008-09, however, has presented the European Union, its common currency the euro, and the United States with new global challenges. The transatlantic partnership has...

Einleitung: Die deutschen Staatsschulden sind in den letzten Jahrzehnten kontinuierlich gestiegen. Künftige Generationen werden zusätzlich aufgrund der demographischen Entwicklung durch die umlagenfinanzierten sozialen Sicherungssysteme belastet. Gerade auch der Anstieg der Verschuldung der...