Insurance Policies for Monetary Policy in the Euro Area* In this paper, we examine the cost of insurance against model uncertainty for the euro area considering four alternative reference models, all of which are used for policy analysis at the ECB. We find that maximal insurance across this model range in terms of a Minimax policy comes at moderate costs in terms of lower expected performance....

Against the backdrop of the Greek three-act tragedy, we present a theoretical framework for studying Greece’s recent debt and currency crisis. The model is built on two essential blocks: first, erratic macroeconomic policymaking in Greece is described using a stochastic regimeswitching model; second, the euro area governments’ responses to uncertain macroeconomic policies in Greece are consider...

In order to understand why there is a continuous increase in euro banknote circulation even though the use of cash for transactions decreasing area – phenomenon known as paradox banknotes members Overseas workstream Eurosystem Research Network on Cash (EURECA) have conducted study foreign demand banknotes. The results this are based desk research using data collected and from other organisation...

This paper defends the Euro from point of view Austrian Economics. Folloming Mises and Hayek it demonstrates is acting as a proxy gold standard disciplining polititians putting limit to growth welfare state. Key words: Gold standard, fixed flexible exchange rates, state crisis, competition among monetary areas, keynesianism, monetarism, School. JEL Classification: N15, N45, O53, P11, X10. Resum...

Productivity Premia for German Manufacturing Firms Exporting to the Euro-Area and Beyond: First Evidence from Robust Fixed Effects Estimations This paper makes three contributions. (1) It summarizes in tabular form a recent literature made of 36 micro-econometric studies for 16 different countries on the relationship between export destination and firm performance. (2) It reports estimates of t...

we have studied the relation between bank deposit rates and house prices in iran. for that, we have run some var models, using the following variables: real deposit rates (including 1 and 5 years deposit rates), money supply (including the high powered money and the liquidity), gdp, housing services index, and number of licenses for new houses. our results show that a reduction in the deposit r...

This paper examines the in ationary consequences of a currency changeover in the catering market. Empirical evidence from the Michelin Red Guide shows that: i) di erently from restaurants in non-euro countries, restaurants in the euro area experienced abnormal price increases just after the changeover, ii) among restaurants in the euro area, tourist restaurants are responsible for most of the a...

This paper examines the relation between money and housing variables in the euro area and in the US. Our empirical model is based on a standard money demand relation which is augmented by housing market variables. In doing so, co-integrated money demand relationships can be established for both the euro area and the US. Furthermore, we find evidence for asset inflation channels, that is, liquid...

We use unique institutional securities holdings data to examine the trading behaviour of delegated capital and its impact on bond risk premia. show that fund managers trade strongly procyclically: they actively move into higher yielding, longer duration lower rated as yields fall spreads compress, vice versa. Funds more exposed negative increase their risk-taking strongly, this effect is partic...

 As the number of independent countries increases and their economies become more integrated, we would expect to observe more multi-country currency :::union:::s. This paper explores the pros and cons for different countries to adopt as an anchor the US Dollar, the Euro or the Yen. In addition, it addresses the question of how co-movement of outputs and prices would respond to the formation of ...