Internationalised banking, alternative banks and the Single Supervisory Mechanism

This paper sets out to explain the preferences of the seven northern euro area member states on the Single Supervisory Mechanism (SSM) concerning the threshold set for direct European Central Bank (ECB) control over bank supervision. Building on the concept of the ‘financial trilemma’, it argues that different bank internationalisation patterns in the seven northern member states explain different preferences on the transfer of supervisory powers over less significant banks to the ECB. In particular, the reach of internationalisation into a national banking system – notably the extent to which even smaller banks were exposed to foreign banking operations – is shown to be the core factor explaining different national preferences on threshold. In the five countries with a large number of small and parochial alternative (cooperative and savings) banks, it is necessary to examine the system-specific structures of these banks to explain better the reach of internationalisation and national preferences on the threshold. Determined German opposition to ECB supervision of smaller alternative banks is juxtaposed with either less hostile or more positive support of at least four other countries despite the important presence of small alternative banks

Profitability of Pension Contributions: Evidence from Real-Life Employment Biographies

Micro-econometric intra-cohort profitability analyses of pay-as-you-go (PAYG) pension contributions are rare. We use representative employment histories of a birth cohort of German PAYG pension insurants retiring in year 2005 to econometrically examine the determinants of the profitability of such contributions using nominal internal rates of return (IRR) as profitability measure. When future nominal pension entitlements are frozen at today's level, average IRR is slightly above three percent. At the same time, IRR differs substantially across beneficiaries. IRR is increasing in beneficiaries' remaining life expectancies at retirement and in the length of non-contribution periods resulting, for example, from child care or care for an ill partner. Due to survivor pensions, married insurants benefit from higher IRR as compared to the non-married. Interestingly, IRR is decreasing in insurants' earnings capacity, indicating that the system entails an intra-cohort progressive element

2003 International Research Forum on monetary policy, Federal Reserve Board, Washington, D.C., November 14-15, 2003

Its purpose is to encourage research on monetary policy issues that are relevant from a global perspective. It regularly organizes conferences that are held alternately in the euro area and the United States. The organizers of the 2003 conference are Ignazio Angeloni (ECB), Matthew Canzoneri (CGES), Dale Henderson (FRB), and Volker Wieland (CFS).Monetary policy

Neoclassical Realism: Challengers and Bridging Identities

This article anchors neoclassical realism (NCR) as a solid theoretical framework which departs from Wendtian constructivism, Moravcsik’s liberal theory, and Putnam’s two-level game liberalism. NCR moves away from these other approaches by bridging three divides: the spatial (domestic–international), the cognitive (matter-ideas), and the temporal (present–future). What matters is not what states have to do because the structure compels them so (as Waltz and Wendt would want us to believe). Looking at what domestic interest groups want states to do (as Moravcsik and Putnam suggest) is also unsatisfactory. Rather, what can states do to represent domestic economic interests within the predefined geopolitical context? The argument here is that a version of geopolitical structure is external to the state and binds. However, a perceptual layer at the level of state policymaker affects the operationalization of that structure. Domestic economic forces make themselves felt through state-level policymakers, but only within the predefined context of binding structural factors that constrain. The findings from this study are vastly different from previous studies, suggesting that NCR’s triple bridging identity distinguishes it from other IR theories.History and International Relation