Slovakia joined the euro area after a period of unprecedented real appreciation. The response to financial crisis combined internal devaluation with productivity increasing measures, including capital deepening in the banking sector. Although this strategy was successfully restoring an external...

With the rapid flow of knowledge and capital from Hong Kong and Taiwan to Mainland China, a dynamic economy of “Greater China” has emerged, making the Chinese trio increasingly interdependent on trade and investment. In this paper we develop a three-variable VAR model to assess empirically...

This paper examines the relationship between financial instability and monetary policy within the Swedish economy. Based on a standard VAR model of monetary policy extended to include measures of financial instability and credit expansions, we examine the interaction between monetary policy and...

From a parsimonious model of the euro zone, we consider a VAR model. The influence of the various structural economic shocks can then be simulated. The results are in conformity with the lessons of the economic theory and show, in particular, that the activity of the euro zone is very sensitive...

An open border, a pegged exchange rate regime and large trade with India offer Nepal some preconditions to satisfy monetary integration with its southern neighbour. In this study, investigation of the economic symmetry in the two countries is considered. A two-pronged empirical approach reveals...

European Union member countries are currently exposed to negative implications of the economic and debt crisis. Questions associated with disputable implications of fiscal incentives seem to be contrary to the crucial need of the effective fiscal consolidation that is necessary to reduce...

European transition economies are still suffering from negative implications of economic crisis. Significant decrease in the key interest rates was followed by reduced maneuverability of central banks in providing incentives into real economies. Low interest rate environment together with...

European transition economies are still suffering from negative implications of economic crisis. Significant decrease in the key interest rates was followed by reduced maneuverability of central banks in providing incentives into real economies. Responsiveness of short-term interest rates to the...

European Union member countries are currently exposed to negative implications of the economic and debt crisis. Questions associated with disputable implications of fiscal incentives seem to be contrary to the crucial need of the effective fiscal consolidation that is necessary to reduce...