This paper uses an estimated DSGE model to analyse the factors behind the build-up of imbalances in the Spanish economy. Shock decompositions suggest that external imbalances have been able to build up mainly due to the reduction in real interest rates and easier access to credit following the...

The financial and economic crisis has generated renewed interest, especially among policy-makers, in early-warning systems that could help identifying fiscal and macro-financial vulnerabilities potentially triggering risks. Against this background, this paper presents an early-warning index of...

There has been an ongoing trend towards increasing internationalisation of production over the past two decades or so. This implies that countries become more dependent on demand from foreign countries but also that countries and industries are able to source intermediates from different...

In a demand system with conventional CES preferences, the price elasticitites of aggregate trade flows are weighted averages of sector-specific elasticities of substitution. We describe a methodology that can be used to estimate country-specific values for the price elasticities of aggregate...

This paper investigates the accession-related economic boom in the countries which recently entered the European Union. The analysis tests whether, on top of the standard growth determinants, the period of EU accession made a significant difference to the growth performance of the New Member...

This paper explores the effects of discretionary fiscal policy in a DSGE model that explicitly models housing investment and allows for credit constrained households along the lines of the financial accelerator literature.The presence of credit constrained households raises the marginal...

The group began by acknowledging the central role that traders will play in helping people understand prices and scales of values and accept the euro. Consumers are in direct physical contact with traders on an almost daily basis, and are thus by definition in a monetary relationship. The shop...

The purpose of these "explanatory notes" is to present a comprehensive and accurate description of EMU in all its aspects. These notes are more specifically aimed at information multipliers and specialists. They shall provide them with detailed explanation on the institutional, technical and...

The introduction of the single European currency present few unceratinties for the continuity of contracts governed by New York law and the laws of other U.S. jurisdictions. In accordance with the State theory of money , all such contractual obligations must be discharged in accordance with the...