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International risk-sharing and the transmission of productivity shocks

Corsetti, Giancarlo; Dedola, Luca; Leduc, Sylvain - 2004

A central puzzle in international finance is that real exchange rates are volatile and, in stark contradiction to effcient risk-sharing, negatively correlated with cross-country consumption ratios. This paper shows that incomplete asset markets and a low price elasticity of tradables can account...

Persistent link: https://www.econbiz.de/10009636531

Do options-implied RND functions on G3 currencies move around the times of interventions on the JPY/USD exchange rate?

Castrén, Olli - 2004

coincide with a movement in the mean of the RND towards a weaker yen both against the US dollar and the euro, as well as with …

Persistent link: https://www.econbiz.de/10009639470

The admission of accession countries to an enlarged monetary union

Ca' Zorzi, Michele; De Santis, Roberto A. - 2003

inflation in the enlarged euro area, but only to inflation redistribution across countries if continuity of the monetary policy … play a key role. The numerical results indicate that the implications for the euro area are significant only if we assume a … enlarged euro area, but sizeable for ACs themselves. …

Persistent link: https://www.econbiz.de/10009639851

Maintaining price stability under free-floating

Detken, Carsten; Gaspar, Vítor - 2003

The behaviour of the exchange rate under a floating exchange rate regime for a small open economy with perfect capital mobility may appear like a managed float or even a firmer peg. We present a canonical new neo-classical synthesis open economy model where the central bank follows a strategy...

Persistent link: https://www.econbiz.de/10009635960

Empirical estimates of reaction functions for the euro area

Gerdesmeier, Dieter; Roffia, Barbara - 2003

This paper contains a set of estimates of reaction functions for the euro area based on a monthly data set starting in … use of different measures of the output gap and the inflation term, can better track the interest rate setting in the euro … rule specification for the euro area. …

Persistent link: https://www.econbiz.de/10009639861

Exchange rate risks and asset prices in a small open economy

Derviz, Alexis - 2004

autarchic (i.e. fundamental) FX returns. The model is calibrated and tested on the Czech koruna/euro exchange rate in a setting … with seven Czech and euro area asset returns. …

Persistent link: https://www.econbiz.de/10009636537

Financial openness and growth

Fratzscher, Marcel; Bussiere, Matthieu - 2004

No empirical evidence has yet emerged for the existence of a robust positive relationship between financial openness and economic growth. This paper argues that a key reason for the elusive evidence is the presence of a time-varying relationship between openness and growth over time: countries...

Persistent link: https://www.econbiz.de/10009639402

Labour market reform and the sustainability of exchange rate pegs

Castrén, Olli; Takalo, Tuomas; Wood, Geoffrey - 2004

It is commonly thought that an open economy can accommodate output shocks through either exchange rate or real sector adjustments. We formalise this notion by incorporating labour market rigidities into an “escape clause” model of currency crises. We show that the absence of structural...

Persistent link: https://www.econbiz.de/10009639466

Tax co-ordination in Europe: assessing the first years of the EU-Savings Taxation Directive

Hemmelgarn, Thomas - 2009

Persistent link: https://www.econbiz.de/10009639915

Towards European monetary integration

González, Fernando; Launonen, Simo - 2005

We assess monetary convergence preceding the implementation of the European Monetary Union (EMU) through Kalman filtering estimates of the risk premium of eleven forward exchange rates of European and non-European currencies. Since all participating currencies are in effect identical from...

Persistent link: https://www.econbiz.de/10009639925