Explaining Sovereign Spreads in the Euro Area: The Role of Contagion, Fiscal Sustainability and Multipla Equilibria

2014 ◽  
Author(s):  
Sergio Capaldi
Keyword(s):  
Euro Area ◽  
Fiscal Sustainability ◽  
Sovereign Spreads

Fiscal Sustainability, Default Risk and Euro Area Sovereign Bond Spreads

2011 ◽  
Author(s):  
Vladimir Borgy ◽  
Thomas Laubach ◽  
Jean-Stéphane Mésonnier ◽  
Jean-Paul Renne
Keyword(s):  
Euro Area ◽  
Default Risk ◽  
Fiscal Sustainability ◽  
Sovereign Bond ◽  
Bond Spreads

scholarly journals Fiscal Sustainability in Aging Societies: Evidence from Euro Area Countries

2020 ◽  
Vol 12 (24) ◽  
pp. 10276
Author(s):  
María del Carmen Ramos-Herrera ◽  
Simón Sosvilla-Rivero
Keyword(s):  
Euro Area ◽  
International Organizations ◽  
Population Aging ◽  
Fiscal Sustainability ◽  
Sharp Rise ◽  
Discretionary Fiscal Policy ◽  
Using Data ◽  
Sustainability Controlling ◽  
Aging Societies

Fiscal sustainability remains a paramount challenge in the Euro Area (EA) countries after the sharp rise in public debt-to-GDP ratios in the aftermath of the financial crisis of 2008. Using data from 11 EA countries over the period 1980–2019, we apply panel data techniques to examine the effects of population aging on fiscal sustainability, controlling for key macroeconomic variables. Our results suggest that the discretionary fiscal policy is strongly persistent, not being consistent with long-term fiscal solvency. Moreover, our results indicate that the fiscal stance is countercyclical for the countries under study and that population aging poses a major challenge for fiscal sustainability. The findings are robust to a different grouping of countries within the sample (core and peripheral countries, relatively old and young countries, and relatively more and less indebted countries). We consider that our results may have some practical meaning for national policymakers and international organizations responsible for regional and global fiscal surveillance and might shed some light on the possible effects that population aging could have on the effort of EA countries to restore public finances on a sustainable basis.

scholarly journals Monetary Policy Surprises over Time

2018 ◽  
Vol 08 (01) ◽  
pp. 1840002 ◽  
Author(s):  
Marcello Pericoli ◽  
Giovanni Veronese
Keyword(s):  
Monetary Policy ◽  
Financial Markets ◽  
Interest Rates ◽  
Euro Area ◽  
Yield Curve ◽  
Sovereign Spreads ◽  
Definition Of ◽  
Term Premia ◽  
The Impact ◽  
Over Time

We document how the impact of monetary surprises on euro-area and US financial markets has changed from 1999 to date. We use a definition of monetary policy surprises, which singles out movements in the long-end of the yield curve — rather than those changing nearby futures on the central bank reference rates. By focusing only on this component of monetary policy, our results are more comparable over time. We find a hump-shaped response of the yield curve to monetary policy surprises, both in the pre-crisis period and since 2013. During the crisis years, Fed path-surprises, largely through their effect on term premia, account for the impact on interest rates, which is found to be increasing in tenor. In the euro area, the path-surprises reflect the shifts in sovereign spreads, and have a large impact on the entire constellation of interest rates, exchange rates and equity markets.

scholarly journals Post-crisis business investment in the euro area and the role of monetary policy

2018 ◽  
Vol 50 (34-35) ◽  
pp. 3787-3797
Author(s):  
Martin Ademmer ◽  
Nils Jannsen
Keyword(s):  
Monetary Policy ◽  
Euro Area ◽  
Business Investment

The Reform of EU Economic Governance

2015 ◽  
pp. 100-118
Author(s):  
Gheorghe H. Popescu
Keyword(s):  
Euro Area ◽  
Policy Coordination ◽  
Economic Governance ◽  
New Governance ◽  
Fiscal Discipline ◽  
Leading Role ◽  
Intergovernmental Policy ◽  
Eu Economic Governance ◽  
New System

The main objective of this chapter is to explore and describe the EU's management of the economic and financial crisis, the leading role of the European Council in economic governance, the governmental and parliamentary institutions involved in EU economic governance, and the democratic character of the new system of economic governance. Applying new conceptual and methodological approaches, this study advances to the next level research on the political relevance of EU-level coordination in the area of economic governance, the new governance of fiscal discipline, the dynamic of building sovereignty at the EU level, and the economic governance of the Euro area. This chapter discusses the major trends in scholarship about the evolution of EU economic governance, the changing decision-making agenda of EU economic governance, the deficiencies in EU economic governance exposed by the crisis, and the slowness of the European measures on the regulation and governance of finance. The authors is specifically interested in how previous research investigated the categorization and exercise of EU competences, the economic government of the Euro area, supranational modes of policymaking, and the tendency of EU economic governance towards intergovernmental policy coordination.

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