September, 8 2017
This working paper aims to analyze the effectiveness of different risk-sharing mechanisms in providing stability to a monetary union using two stylized tools with extreme and opposite features. Using a stylized periphery-core model of a monetary...
July, 20 2017
F. Passacantando: Italexit, cancellazione del debito e monete parallele: l’attrazione fatale per la soluzione argentina
This study aims to show the extraordinary complexity of an exit from the euro by Italy through a comparison with Argentina in the nineties when they adopted a currency convertibility with the dollar. After abandoning that regime in 2002 and having...
July, 4 2017
L. Andreozzi & R. Tamborini: Why is Europe Engaged in an Interdependence War, and How Can it be Stopped?
There is large evidence that European countries, the EMU in particular, are engaged in an interdependence war, i.e. non-cooperative policies with huge social and economic costs due to mutual negative externalities.
May, 11 2017
A theory in which the central bank controls the price level is put forward as an alternative to the fiscal theory of the price level. It is not necessary to have a fiscal stimulus to avoid liquidity traps nor a fiscal anchor to disallow inflationary...
March, 17 2017
R. De Santis, P. Esposito & E. Masi: Are There Common Structural Determinants of Potential Output Growth in Europe?
GDP growth in the Eurozone during the last twenty years continuously decreased. In addition, the global financial crisis and subsequent events seem to have, on average, shifted the trajectory of the Eurozone’s potential output downward. A key question is...
March, 10 2017
Do banks with low capital extend excessive credit to weak firms, and does this matter for aggregate efficiency? Using a unique data set that covers almost all bank-firm relationships in Italy in the period 2004-2013, we find that, during the Eurozone...
March, 7 2017
S. Berardi & A. Marcelletti: Optimal Bank Capital Requirements - An Asymmetric Information Perspective
The issue on the amount of capital banks should hold has pushed back the debate on top of policymakers' agenda. Literature on this field mainly focuses on how to prevent banks from gaming risk-weighted capital requirements.