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This paper aims at empirically assessing the effect of the adoption of the euro on the ability of euro area member states to smooth consumption and share risk. With the objective of evaluating the economic performance of euro area countries in the scenario where the euro had not been adopted, we construct a counterfactual dataset of macroeconomic variables via the Synthetic Control Method. In order to get some preliminary measures of risk sharing, we compute correlations between consumption and GDP within a country, bilateral consumption correlations, and Brandt-Cochrane-Santa Clara indices across euro area member states. We then decompose risk sharing in different channels by means of the Asdrubali, Sorensen and Yosha (1996) output variance decomposition. Our difference in difference estimates show that the euro has not affected the level of international risk sharing across euro area countries, but has partially reduced the ability of member states to smooth consumption. We attribute this change to the higher GDP growth generated by the adoption of the euro, which has been accompanied by a greater output volatility. We also report differential effects for euro area core and periphery countries, showing that the former have not suffered any negative effect from the adoption of the euro in terms of risk sharing whereas the latter are now less able to smooth consumption. ; The ADEMU Working Paper Series is being supported by the European Commission Horizon 2020 European Union funding for Research & Innovation, grant agreement No 649396.

The completion of the Common European Asylum System by 2012 - key objective of the EU (.)

Nowadays computer networks are widely spread in all spheres of human life. That is why the problem of cyber security of mankind is of great importance. Today, the European Union makes efforts to guarantee network safety in Europe by means of increase its member states in power and international cooperation in cyber security, including non-member countries, to prevent cyber crimes. Striving to join the European Union, Ukraine is involved in the process of providing cyber security. This paper examines the main strategies of EU standards in cyber security to be followed by Ukraine as one of European countries.

For some time now the buzzword 'transparency' has been bandied about in the media almost daily. For example, calls were made for greater transparency in the financial system in connection with developments in the Asian financial markets. But the call for greater transparency goes far beyond the financial markets. It is now regarded as a necessary part of "good governance" demanded of all economic policy makers. As the World Bank's chief economist Joseph Stiglitz put it: 'No one would dare say that they were against transparency (.): It would be like saying you were against motherhood or apple pie.' This paper focuses on transparency in monetary policy, in particular with respect to the European System of Central Bank.

This thesis focuses on two aspects of European economic integration: exchange rate stabilization between non-euro Countries and the Euro Area, and real and nominal convergence of Central and Eastern European Countries. Each Chapter covers these aspects from both a theoretical and empirical perspective. Chapter 1 investigates whether the introduction of the euro was accompanied by a shift in the de facto exchange rate policy of European countries outside the euro area, using methods recently developed by the literature to detect "Fear of Floating" episodes. I find that European Inflation Targeters have tried to stabilize the euro exchange rate, after its introduction; fixed exchange rate arrangements, instead, apart from official policy changes, remained stable. Finally, the euro seems to have gained a relevant role as a reference currency even outside Europe. Chapter 2 proposes an approach to estimate Central Bank preferences starting from the Central Bank's optimization problem within a small open economy, using Sweden as a case study, to find whether stabilization of the exchange rate played a role in the Monetary Policy rule of the Riksbank. The results show that it did not influence interest rate setting; exchange rate stabilization probably occurred as a result of increased economic integration and business cycle convergence. Chapter 3 studies the interactions between wages in the public sector, the traded private sector and the closed sector in ten EU Transition Countries. The theoretical literature on wage spillovers suggests that the traded sector should be the leader in wage setting, with non-traded sectors wages adjusting. We show that large heterogeneity across countries is present, and sheltered and public sector wages are often leaders in wage determination. This result is relevant from a policy perspective since wage spillovers, leading to costs growing faster than productivity, may affect the international cost competitiveness of the traded sector.

Wolfgang J. Mückl (Hrsg.) ; Volltext // Exemplar mit der Signatur: München, Bayerische Staatsbibliothek -- PVA 2000.3585

ABSTRACT: International Monetary System (IMS) has been in the center of the heated debates over 70 years. Severe exchange rate mismatches and global liquidity problems not only led to global crises but also necessitated systemic changes. Notwithstanding several initiatives, setting proper exchange rate mechanisms has not been able to be realized. After the demise of the Bretton Woods system, an amorphous arrangement mechanism of exchange rates was established that led to further severe challenges globally. Moreover, rapid financial globalization and capital liberalization made exchange rates more vulnerable to external shocks. On the other hand, design flaws in global liquidity and reserve system seem hardly to be solved in the absence of the global lender of last resort and sustainable pro-cyclical liquidity provision. In this regard, the increasing scope of various components of the global financial safety nets raises serious concerns in terms of predicting their impact on global economic cycles. Additionally, major challenges associated with the global reserve system reveal that numerous economies still prefer to rely on national and regional-level frameworks rather than multilateral ones. The escalating tendency of such polarization within the global reserve system imposes serious sustainability challenges for the global economy. It should be emphasized that reforming the IMS is a dynamic process in which providing universal and ultimate solutions are far from reality. This study indicates that it would not be a smooth process to eliminate all these challenges that mostly stem from deep contradictions among nation-states' interests and multilateral frameworks. KEYWORDS: global liquidity, global financial safety nets, exchange rate imbalances, swap arrangements, Special Drawing Rights, political stigma

Paper presented at ADEMU (A Dynamic Economic and Monetary Union) conference co-organised by the ESM in May 2016 ; This paper aims at empirically assessing the effect of the adoption of the euro on the ability of euro area member states to smooth consumption and share risk. With the objective of evaluating the economic performance of euro area countries in the scenario where the euro had not been adopted, we construct a counterfactual dataset of macroeconomic variables via the Synthetic Control Method. In order to get some preliminary measures of risk sharing, we first compute bilateral consumption correlations and Brandt-Cochrane- Santa Clara Indexes across euro area member states. We then decompose risk sharing in different channels by means of the Asdrubali, Sorensen and Yosha (1996) output decomposition. Our preliminary measures and our decomposition of risk sharing are computed with both actual and synthetic data so as to identify whether there has been any effect of the adoption of the euro on risk sharing and through which channels it has occurred. We find that the euro has not affected the level of risk sharing across euro area countries, but has partially reduced the ability of member states to smooth consumption. We attribute this change to the higher GDP growth generated by the adoption of the euro, which has been accompanied by a greater output volatility. We also report differential effects for core and periphery countries, showing that the former have not suffered any negative effects from the adoption of the euro in terms of risk sharing. ; This project is related to the research agenda of the ADEMU project, "A Dynamic Economic and Monetary Union". ADEMU is funded by the European Union's Horizon 2020 Program under grant agreement N° 649396 (ADEMU).

The creation of the European Monetary Union was both a political and an economic decision considered to be a success for almost a decade. Starting from 2008-2009, the EMU has been facing the most difficult moments of its existence. This paper aims at analyzing the impact of the current financial crises on the EMU member countries, the measures taken up to the present as a response to the crises and the future perspective for the European single currency. Both the breaking up of the EMU and its maintaining prove to be costly decisions. The recent evolutions have shown the political will to keep the EMU together, but we must ask ourselves at what price and risk.

European Economic and Monetary Union faces the most serious crisis since its foundation. The concept of the Union with a single monetary policy and autonomous fiscal policy, which is partially limited by the fiscal rules, as defined by the Maastricht Treaty (later confirmed by the Lisbon Treaty) and specified by the provisions of the Stability and Growth Pact, has proved to be totally inadequate to address the problems of fiscal discipline of the member states. In such circumstances, the need for institutional reform of the European Economic and Monetary Union has been imposed. Revised fiscal rules and regulations on the coordination of economic policies promote institutional base of EMU. The effectiveness and credibility of the new fiscal framework depends on its strict application, readiness of the Commission to monitor fiscal discipline of the member states and the willingness of other institution, firs of all Council to limit the degree of political discretion.

Industrial fluctuations are closely related to the evolution of relative prices of produced goods and resources involved in production activity. Industrial fluctuations, as an expression of forces manifested in the real economy, are caused by changes in individuals' consumption and investment decisions, produced within expansionary monetary policies. The ease of obtaining a bank loan in the context of decreasing interest rates and of larger amounts of money caused an increase in individuals' demand for goods resulted from longer, capital intensive production processes. The rise in prices of intermediate and capital goods in a faster pace compared to the increase in prices of consumer goods is doubled by the increase of the share of higher order industries in the structure of production. The objective of this paper is to analyze changes in industrial structure of Eastern Europe countries within the policies of quick access to monetary resources. The analyzed states (Bulgaria, the Czech Republic, Hungary, Poland and Romania) are part of the European Union and have autonomous monetary policies, meaning that they have not yet adopted the common currency. In all economies analyzed, we find approximately the same patterns of monetary expansion and industrial fluctuations.

European Economic and Monetary Union is currently in the course of preparation by an inter-governmental conference. What are the benefits and risks associated with European monetary union? What essential requirements need to be fulfilled when the agreements are concluded?

The inception of the single currency was expected to make balance of payments irrelevant among Euro area members. This is why during the first ten years of EMU both academic and political debates disregarded the widening of trade imbalances among its members. The eruption of the financial crisis in 2008 changed the attitude towards this issue and the persistence of trade imbalances became source of growing concern. Owing to a substantial lack of clarity in the debate, the aim of this research is to fill the gaps of this discussion and answer the question whether, and eventually why, trade imbalances should matter even in the European Monetary Union.

This paper outlines the modern trends in the development of the international monetary system in conditions of financial globalization. The paper establishes that the international monetary system has evolved through different stages necessitated by various economic crises at different periodic intervals. It is noted in the paper that despite the inefficiencies in the current dollar denominated international monetary system developed countries are reluctant to do any reforms. However, International monetary system reform is obvious and most likely will happen under the growing crisis in the international financial systems and credit relations. It is proposed that countries look at new innovations that will make international transactions cheaper and less risky. ; peer-reviewed

Twenty years after the introduction of the euro, this Weekly Report uses an empirical analysis to assess the performance of monetary policy in the EMU founding states. It is often claimed that the monetary policy of the European Central Bank (ECB) cannot outperform its national predecessors, as the euro area countries experience different business cycles yet share a common interest rate. However, the present analysis shows that the ECB's common monetary policy has been more adept at stabilizing the economy than most of its national predecessors from the perspective of the member states. With a common currency, European monetary policy has also become largely independent of exchange rates. However, the central bank is unable to counter long-term macroeconomic imbalances. To protect euro area countries from crises more effectively, priority should be given to reforming the monetary union and fiscal policy as well as to completing the Banking Union and the Capital Markets Union. Mistakes in crisis management must be openly discussed in order to address the temptation some have to renationalize economic and monetary policy; the ECB's monetary policy should not be a scapegoat.