In this paper, a structural vector error correction model (S-VECM) is estimated to investigate three essential prerequisites for a successful monetary targeting strategy: stability, controllability and predictability. First, multivariate cointegration techniques are used to identify two...

This paper calculates structural balances for EU-countries and relates them to fiscal sustainability. Although the Stability Pact implicitly accepts the need to distinguish between the structural and the cyclical component of net deficits, the issue of long-term sustainability is only covered by...

Costs of a monetary union are typically analysed in the context of the optimum currency area approach, looking at the likelihood of asymmetric real disturbances, the degree of real wage flexibility and of labour mobility. But it is also important to consider the leeway of monetary and fiscal...

The Treaty of Maastricht specified the goals for monetary policy: According to Art. 105(1), the primary objective of the European System of Central Banks (ESCB) is to maintain price stability. However, the Treaty also stipulates that, without prejudice to the objective of price stability, the...

Fünf Jahre nach der Lehman-Pleite haben viele BeobachterInnen den Eindruck, dass sich an den Funktionsmechanismen des Finanzsystems wenig geändert hat. Wie verträgt sich dies mit dem Umstand, dass seither zahlreiche Reformen umgesetzt wurden? Der Beitrag gibt einen Überblick über Historie...

Mit dem Bedeutungsverlust der Politikineffizienzthese der Neuen Klassischen Makroökonomie ist nun staatliche Konjunktursteuerung wieder in das Zentrum des wissenschaftlichen Interesses gerückt. Insbesondere der Geldpolitik werden bedeutende reale Effekte in der kurzen und mittleren Frist...

We examine net lending/net borrowing and the underlying debt dynamics at the sectoral level in the European Union. Saving and investment patterns indicate that there have been considerable deleveraging efforts since the start of the global financial crisis, particularly in the nonfinancial...

Costs of a monetary union are typically analysed in the context of the optimum currency area approach, looking at the likelihood of asymmetric real disturbances, the degree of real wage flexibility and of labour mobility. But it is also important to consider the leeway of monetary and fiscal...

According to the Pact for Stability and Growth (PSG), in the medium term the net deficit should be close to balance or in surplus. We question the use of the net deficit as the only medium-term budgetary objective and as the main indicator for the assessment of fiscal policy. Hence, for...