A sovereign debt crisis develops when lenders doubt that outstanding nominal debt is backed by the present value of future primary budget surpluses. The European Stability Mechanism hopes to prevent default by promoting structural adjustments which improve primary budget surpluses. The author...

In this paper, we analyze the volume of Euro banknotes issued by Germany and circulating in other Euro area countries as well as outside the Euro area with a banknotes’ age model. Our approach suggests that about 60% of banknotes, the equivalent of around € 225 billion, is held abroad.

In this paper, we analyse the volume of euro banknotes issued by Germany within the euro area with several seasonal methods. We draw a distinction between movements within Germany, circulation outside Germany but within the euro area and demand from non-euro-area countries. Our approach suggests...

The paper makes a review of the current situation of the countries outside the Eurozone and the future period consequences generated by the transition to Euro upon these countries. The major consequences for the countries wishing to access to the EMU relate to the occurrence of new elements of...

In this paper we provide a brief discourse on the theory of optimum currency areas to serve as a basis for constructive criticism of the conceptual framework of the eurozone. With particular reference to the Greek economic crisis, we argue that the very architecture of the EU experiment...

Transcript of an interview with Roland Vaubel, who discusses the Euro as a creature of politics. He explains the particular political machinations behind its history, current state, and likely future.

The article points out that monetary stability does not hinge upon formal central bank independence. The reason is that the legislator can easily restrict that independence by changing the law. Because the EU council as the true legislator does not face effective supervision by the citizens it...

The article discusses possible implications of European Monetary Union (EMU) on member states' budget policies. It predicts that the non-bail-out clause will not work.

The article discusses possible implications of European Monetary Union (EMU) on member states' budget policies. It predicts that the non-bail-out clause will not work.

The article points out that monetary stability does not hinge upon formal central bank independence. The reason is that the legislator can easily restrict that independence by changing the law. Because the EU council as the true legislator does not face effective supervision by the citizens it...