Search results for "jel:F3"
showing 6 items of 36 documents
The Dynamics of Currency Substitution: Evidence from UK Foreign Currency Balances
2006
This study evaluates the magnitude of the permanent and the transitory components of currency substitution in the UK. The results indicate that the permanent component, the ratchet effect, accounted only for a small share while the aggregate temporary component, speculation, whose impact lasts about one month, was responsible for most of the dynamics of UK currency substitution. The findings thus lend support to the view that at worst currency substitution would only cause short-run problems for the UK economy.
Exchange Rate Arrangements in Central and Eastern European Countries – Evolutions and Characteristics
2007
The process of choosing the exchange rate regime for the new EU member states has been influenced by other criteria than the traditional ones, which belong to macroeconomic criteria. This paper make a comparative analyze of the exchange rate arrangements in Central and Eastern European after 1990. These arrangements are dynamic on the one hand due to their permanent diversification and on the other hand because the values established this way are rapidly changing. In essence, they differ according to the degree of flexibility adopted when the exchange rate is established: from more rigid forms – currency board or pegging the currency to a foreign currency – to free floating.
THE BASEL III APPROACH ON LIQUIDITY RISK
2015
The Basel III agreement has emerged due to the need for a more efficient risk management in banking in order to prevent banking crises. The vision presented by Basel III and then taken over by European regulations is much stricter than earlier agreements, one of the novelties brought by this agreement being the introduction of indicators to monitor the liquidity risk. Through this work we aim to perform an analysis on how to determine the indicators, because in general, these indicators are present only in their synthetic shape but the practical determination is complex and causes difficulties, particularly for small banks.
Competitiveness, Economic Freedom and Real Exchange Rate. Evidence from Romania
2006
In the new context of European Integration, Romania has to improve some important macroeconomic indicators, such as: competitiveness, economic freedom and real exchange rate for a sustainable economic growth. Many authors emphasize that competitiveness and economic freedom affects economic growth through stimulating investment and business environment. The equilibrium exchange rate is crucial as it directly influences external competitiveness, especially through export prices. For Romania, the competitiveness can be improved through the economic freedom growth and the real exchange rate appreciation. But this appreciation must be accompanied by a rise in productivity and in the quality of t…
The Euro and Monetary Policy Transparency
2002
This paper focuses on a possible explanation for the weakness of the euro, namely the lack of transparency of the European Central Bank's (ECB) monetary policy. In order to obtain a time-varying measure of monetary policy uncertainty in both the U.S. and Euroland, we estimate a Stochastic Volatility model using policy-adjusted short-term interest rates. We also analyze directly the impact of higher uncertainty on the euro-dollar exchange rate. The empirical findings are in line with those of other studies, and show that the U.S. Fed is more transparent than the ECB. This results in higher volatility of European interest rates, capital outflows, and a weaker euro vis-a-vis the U.S. dollar.
STATE AID POLICY BETWEEN COMPETITION AND ECONOMIC GROWTH: THE IMPACT OF STATE AID TO R&D ON GDP IN THE EU MEMBER STATES
2012
The paper focuses on the analysis of the relationship between state aid to R&D and economic growth, measured by GDP level, providing empirical evidence of a correlation between these variables. Using a methodology which combines the regression technique and Granger causality, we found that GDP represents a significant causal determinant of state aid, while the correlation the variables considered is positive and statistically significant, suggesting that, in spite of disparities between Member States, government support through state aid to R&D has evolved from maintaining undistorted competition to the possibility to act as an incentive for the economic growth in the EU.