October, 25 2019
The reform of the Treaty Establishing the European Stability Mechanism (ESM) broadens the functions of this mechanism so as to transform its current role of financial manager of sovereign debt crises into an institution for the prevention, control and...
October, 2 2019
P. Canofari, G. Di Bartolomeo and M. Messori: Sovereign debt crisis, fiscal consolidation, and active central bankers in a monetary union
In this paper we examine global financial instability and its impact on the sovereign debts of peripheral countries in a stylized model of the European Economic and Monetary Union (EMU), where centralized and national policy authorities strategically...
September, 20 2019
In the decades preceding the 2007-2009 international financial crisis and the related ‘doom loop’ between the European sovereign debt crisis and the European banking sector crisis (2010-2013), the external financing of the ‘real’ activities in the...
July, 5 2019
C. Battiati, C. Jona-Lasinio and S. Sopranzetti: Productivity growth and global value chain participation in the digital age
This paper provides a comprehensive overview of the current productivity trends and their potential drivers in the Euro area and in the US taking into account the ongoing digital transformation. We then investigate whether the reorganization of the...
May, 29 2019
P. Canofari, A. Marcelletti, M. Messori: Redenomination risk and bank runs in a monetary union with and without deposit insurance schemes
This paper develops a basic framework characterized by a monetary union in which a shock to the policy interest rate, to be intended as the determinant of a recessionary stance in the monetary policy, can imply that a member state finds it worthwhile to...
May, 15 2019
The only way to share common liabilities in the Eurozone is to achieve full fiscal and political union, i.e. unity of liability and control. In the pursuit of that goal, there is a need to smooth the transition, avoid unnecessary strains to macroeconomic...
May, 13 2019
E. Avgouleas and C. Goodhart - Bank Resolution 10 Years From The Global Financial Crisis: A Systematic Reappraisal
Since 2010 most Group of Twenty (G20) jurisdictions have introduced new recovery and resolution regimes to deal with bank failures. The common objective of these regimes is, first, to facilitate the orderly failure of financial institutions and, second,...