March, 11 2020
Since the burst of the sovereign debt crisis, investors perceive the concrete possibility of a breakup of the Eurozone. We exploit CDS quotes for contracts denominated in di erent currencies and with di erent default clauses to estimate the network of...
February, 28 2020
Drawing from the debate between the “German” and the “Keynesian” views about the reason for the Euro Area slow recovery after the 2008 financial shock, I discuss different claims about why and if this is a consequence of the Monetary Union institutional...
November, 29 2019
This paper discusses topics related to the growth mechanism in Europe, and specifically in the eurozone. It looks at the interaction of macroeconomic and structural aspects identifying issues where more analysis is needed in order to draw policy...
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...