42 research outputs found
Toward a sustainable eurozone
We argue that the various proposals aimed at stabilizing the Eurozone using financial engineering do not eliminate the inherent instability of the sovereign bond markets in a monetary union. During crises, this instability becomes systemic and no amount of financial engineering can stabilize an otherwise unstable system. The real stabilization of the Eurozone entails two mechanisms. The first is the willingness of the European Central Bank (ECB) to provide liquidity in the Eurozone sovereign bond markets during times of crisis. The ECB has set up its Outright Monetary Transactions (OMT) program to do this. However, OMT is loaded with austerity conditions, which will be counterproductive when used during recessions, which is when crises generally occur. That is why a second mechanism is necessary, which consists in creating a Eurozone budget
Monetary and fiscal policy interactions in Brazil: an application of the fiscal theory of the price level
Trade and the Number of Optimum Currency Areas in the World
This paper employs worldwide data on output and bilateral trade in order to identify optimum currency areas (OCA’s) on a global basis. By retaining only two of the many criteria that have been mentioned in the literature on OCA’s, it has been possible to use computer programming to do the identification. Based on the first of the two criteria, relating to trade, some large continental OCA’s can be discerned in the world. Adding the second criterion, which concerns symmetry-of-output-shocks, whittles down the size of the OCA’s. Nevertheless, some significant examples remain in the Americas, Europe and Asia, of which the European and the Asiatic are the most noteworthy.Business Cycles; Optimal Currency Areas; Trade
The Euro at ten: achievements and challenges
Eurozone, Monetary union, Governance, Inflation, Money targeting, E42, F59,
Regional Redistribution and Risk Sharing in Italy: The Role of Different Tiers of Government
Arachi G., Ferrario C. and Zanardi A. Regional redistribution and risk sharing in Italy: the role of different tiers of government, Regional Studies. This paper provides estimates of the redistribution and risk sharing across regional jurisdictions accomplished by the public sector in Italy. In this analysis the multi-level structure of the Italian government and the financial relations which link the different tiers of government are explicitly considered. Using panel data for the period 1996-2002, it is found that public policies in Italy significantly reduce differences in per-capita gross domestic product across regions. However, the public budget, far from providing insurance against idiosyncratic shocks, greatly emphasizes income fluctuations across regions. [image omitted] Arachi G., Ferrario C. et Zanardi A. La redistribution regionale et le partage des risques en Italie: le role des divers niveaux d'administration, Regional Studies. Cet article cherche a fournir des estimations de la redistribution et du partage des risques a travers des circonscriptions d'action regionale et realises par le secteur public italien. Cette analyse approfondit la structure a niveaux multiples de l'administration italienne et examine ouvertement les rapports financiers qui relient les divers niveaux d'administration. A partir des donnees provenant des enquetes permanentes pour la periode de 1996 a 2002, il s'avere que les politiques publiques en Italie reduisent sensiblement les ecarts du PIB regional par tete. Cependant, les depenses publiques, loin de fournir une protection contre des chocs particuliers, soulignent les fluctuations du revenu a travers les regions. Politique fiscale Redistribution Partage des risques Rapports entre les niveaux d'administration Regions Arachi G., Ferrario C. und Zanardi A. Regionale Umverteilung und Risikoteilung in Italien: die Rolle der verschiedenen Regierungsebenen, Regional Studies. In diesem Beitrag schatzen wir das Ausmass der Umverteilung und Risikoteilung zwischen verschiedenen regionalen Rechtsprechungsgebieten des offentlichen Sektors in Italien. Ausdrucklich in der Analyse berucksichtigt werden die mehrschichtige Struktur der italienischen Regierung sowie die finanziellen Beziehungen, die die verschiedenen Regierungsebenen miteinander verbinden. Anhand von Paneldaten fur den Zeitraum von 1996 bis 2002 stellen wir fest, dass die offentlichen Politiken in Italien die Unterschiede des Pro-Kopf-BIP zwischen den Regionen signifikant verringern. Im offentlichen Haushalt werden die Einkommensfluktuationen innerhalb der Regionen jedoch stark betont, statt eine Absicherung gegen idiosynkratische Storungen zu gewahrleisten. Steuerpolitik Umverteilung Risikoteilung Beziehungen zwischen Regierungen Regionen Arachi G., Ferrario C. y Zanardi A. Redistribucion regional y riesgo compartido en Italia: el rol de los diferentes niveles de gobierno, Regional Studies. En este articulo ofrecemos las estimaciones de la redistribucion y el riesgo compartido en varias jurisdicciones regionales del sector publico en Italia. En este analisis se consideran expresamente la estructura multinivel del gobierno italiano y las relaciones financieras vinculadas a los diferentes estratos de gobierno. Con ayuda de datos de panel para el periodo 1996-2002 observamos que las politicas publicas en Italia reducen considerablemente las diferencias entre los niveles del PIB per capita en las regiones. Sin embargo, en el presupuesto publico, lejos de ofrecer un seguro contra los choques idiosincrasicos, se acentuan en gran medida las fluctuaciones de ingresos en las regiones. Politica fiscal Redistribucion Riesgo compartido Relaciones intergubernamentales RegionesFiscal policy, Redistribution, Risk sharing, Inter-governmental relations, Regions,