When confronted with the current crisis in peripheral Europe, many specialists in emerging-market macroeconomics feel that it is déjà vu all over again. An implication of this feeling is that in order to understand the current situation in southern Europe, one should dust off the theories of exchange-rate crises that were motivated by the economic experience under fixed exchange rates in Latin ...

The relationship between government debt, exports and economic growth has been the focus of a considerable number of academic studies in recent years. The economic crisis, which started in the United States mortgage market, quickly went global when mortgage-backed securities traded by financial institutions. Europe’s response was immediate regarding the measures to tackle the crisis. The establ...

BACKGROUND A trend towards automation of scientific research has recently resulted in what has been termed "data-driven inquiry" in various disciplines, including physics and biology. The automation of many tasks has been identified as a possible future also for the humanities and the social sciences, particularly in those disciplines concerned with the analysis of text, due to the recent avail...

This paper studies fund flows and risk allocation decisions among prime money market funds (MMFs) during the 2011–2012 eurozone crisis. We exploit much more granular measures of fund credit risk and investor sophistication than previously employed in the literature. Empirically, we find that funds with greater credit risks experienced larger outflows during the eurozone crisis. This effect was ...

We suggest a methodology for the construction of a set of interest rate volatility indices for the Eurozone (EIRVIXs) based on the implied volatility quotes of caps (floors), one of the most liquid interest rate derivatives. These indices reflect the market’s aggregate expectation of volatility of forward rates over both shortand long-term horizons (from one to ten years ahead). Volatility indi...

Abstract The past decade has profoundly reshaped the fiscal governance system of Eurozone. Supranational prerogatives vis-à-vis State budgets have been significantly expanded, thereby redefining nature Union action in field policy and transforming dynamics between its Member States. In spite overhaul practical effects that Eurozone now produces on ground, paper shows overall, this regulatory st...

The roots of the Euro area crisis can be traced back to at least the summer of 2007. Although not picked up by the credit rating agencies until much later, the probability of default on sovereign debt increased in parallel with clear macroeconomic misalignments. These misalignments include recession-triggered budget deficits, bailout-motivated fiscal measures,1 as well as country-specific strat...

The last financial crisis in 2008 has weakened the Euro-zone countries. Most of them were deeply affected, and their economic growths have not returned to pre-crisis rates. Moreover, inflation rate is still very low despite European Central Bank’s interventions. Twelve years later, a health occurred. ECB reacted this event by using monetary tools. We can cite for example famous temporary Pandem...

Economics played little role in the decision to create the euro – politics was king. Going forward, however, economics moves to centre stage. Should the Eurozone worry about admitting new members who are very economically different from incumbents? What are the costs and benefits of euro-adoption for potential joiners? Are the famous Maastricht Criteria the right economic tests for potential me...