scholarly journals Financial Cycles in Euro Area Economies: A Cross-Country Perspective

2018 ◽  
Author(s):  
Davor Kunovac ◽  
Martin Mandler ◽  
Michael Scharnagl
Keyword(s):  
Euro Area ◽  
Cross Country ◽  
Financial Cycles

Cross-Cutting Themes in Major Article IV Consultations

Policy Papers ◽  
2009 ◽  
Vol 09 ◽  
Author(s):  
Keyword(s):  
United States ◽  
United Kingdom ◽  
Euro Area ◽  
Capital Flows ◽  
World Economy ◽  
The United States ◽  
Policy Responses ◽  
The United Kingdom ◽  
The World ◽  
Cross Country

This paper is part of a broader on-going effort to bring a more cross-country perspective to bilateral surveillance, taking advantage of a cluster of Article IV consultations with five systemically important economies concluded in July. With the five economies—the United States, the Euro area, China, Japan, and the United Kingdom—accounting for two-thirds of global output and three quarters of capital flows, the nature of linkages and consistency of policy responses across the systemic five (S5) has important implications for the world economy.

Real and Financial Cycles in Euro Area Economies: Results from Wavelet Analysis

2019 ◽  
Vol 239 (5-6) ◽  
pp. 895-916 ◽  
Author(s):  
Michael Scharnagl ◽  
Martin Mandler
Keyword(s):  
Wavelet Analysis ◽  
Euro Area ◽  
Cycle Length ◽  
House Prices ◽  
House Price ◽  
Real Activity ◽  
Economic Cycles ◽  
Real Gdp ◽  
Common Cycles ◽  
Financial Cycles

Abstract We study the within-country dimension of financial cycles in the four largest euro area economies using tools from wavelet analysis. We focus on credit and house price cycles which are most commonly used to represent the financial cycle. With the exception of Germany, the variables contain important common cycles within each country close to the upper bound of business cycle length and beyond which can be interpreted as financial cycles. These cycles are closely linked to domestic cycles in real activity showing financial and real economic cycles as interconnected phenomena. For these common cycles, credit and house prices lag real GDP.

MACROECONOMIC EFFECTS OF GREATER COMPETITION IN THE SERVICE SECTOR: THE CASE OF ITALY

2010 ◽  
Vol 14 (5) ◽  
pp. 677-708 ◽  
Author(s):  
L. Forni ◽  
A. Gerali ◽  
M. Pisani
Keyword(s):  
Euro Area ◽  
Service Sector ◽  
Monopolistic Competition ◽  
Spillover Effects ◽  
Dynamic Stochastic General Equilibrium ◽  
Services Sector ◽  
Long Run ◽  
Dynamic Stochastic ◽  
Nontradable Goods ◽  
Cross Country

In this paper we assess the effects of increasing competition in the service sector in one country of the euro area. We focus on Italy, which, based on cross-country comparisons, stands out as the country with the highest markups in nonmanufacturing industries among the OECD countries. We propose a two-region (Italy and the rest of the euro area) dynamic stochastic general equilibrium model where we introduce nontradable goods as a proxy for services and we allow for monopolistic competition in labor, manufacturing, and services markets. We then use the model to simulate the macroeconomic and spillover effects of increasing the degree of competition in the Italian services sector. According to the results, reducing the markups in services to the levels prevailing in the rest of the euro area induces in the long run an increase in Italian GDP equal to 11% and an increase in welfare (measured in terms of steady state consumption equivalents) of about 3.5%. Half of the GDP increase would be realized in the first three years. The spillover effects to the rest of the euro area are limited: consumption, investment, and GDP increases are relatively small.

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