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Full-Text Articles in International Economics
Monetary Policy And Systemic Risk-Taking In The Euro Area Banking Sector, Alain Kabundi, Francisco Nadal-De Simone
Monetary Policy And Systemic Risk-Taking In The Euro Area Banking Sector, Alain Kabundi, Francisco Nadal-De Simone
WCBT Faculty Publications
Available empirical evidence on the significance of the (micro) risk-taking channel of monetary policy is not enough to indicate a threat to financial stability. Evidence of risk-taking with systemic risk implications is necessary. Statistical measures that capture systemic risk in all its forms within a structural factor-augmented vector autoregressive model suggest that conventional and unconventional monetary policies have resulted in systemic risk-taking in the euro area banking sector. Systemic risk has taken the form of an increase in the banking sector’s vulnerability via contagion and interconnectedness. Banks’ balance sheets, however, do not account for the full transmission from (micro) risk …
Feasibility And Timing Of The Euro Adoption By The New Eu Member States, Lucjan Orlowski
Feasibility And Timing Of The Euro Adoption By The New Eu Member States, Lucjan Orlowski
WCBT Faculty Publications
The 10 new member states are now facing the challenge of framing and implementing policies for adopting the euro. They are all bound by the EU Treaty to replace their national currencies with the euro at some future time as they were admitted to the Union with a derogation to this effect. In order to prepare adequately for entry to the euro area, the candidates need to undergo fiscal and monetary convergence. In principle, they should refrain from lax fiscal policies that could skew the eurozone policy mix by forcing the European Central Bank (ECB) to tighten monetary policy. They …
Monetary-Policy Targeting In The Central European Transition Economies, Lucjan T. Orlowski
Monetary-Policy Targeting In The Central European Transition Economies, Lucjan T. Orlowski
WCBT Faculty Publications
This chapter examines the monetary-policy-targeting systems, in the second half of the 1990s (until 1998), of three Central European EU-accession candidates—the Czech Republic, Hungary, and Poland--and advocates the potential benefits of applying a direct-inflation-targeting (DIT) system in them. For the purpose of the analysis presented here, DIT is defined as "a monetary policy framework that is based on the assumption of long-term price stability as the official policy goal and on the designation of the official inflation forecast as intermediate policy target" (Orlowski, 2000). Section 1 is a brief overview of monetary-targeting practices in the Czech Republic Hungary, and Poland. …
Exchange-Rate Policies In Central Europe And Monetary Union, Lucjan Orlowski
Exchange-Rate Policies In Central Europe And Monetary Union, Lucjan Orlowski
WCBT Faculty Publications
Looks at the relationship between exchange-rate and monetary policies in transition economies (TEs) in central Europe bent on becoming part of the European Union. Review of practiced targets of monetary policy in response to the requirements of monetary union; Question of whether or not candidates will resort to a final currency devaluation; Suggestions for adjustments in short- and long-term monetary policy.