scholarly journals UNCOVERING THE COMMON RISK-FREE RATE IN THE EUROPEAN MONETARY UNION

2013 ◽  
Vol 29 (3) ◽  
pp. 394-414 ◽  
Author(s):  
Rien J. L. M. Wagenvoort ◽  
Sanne Zwart
Keyword(s):  
Monetary Union ◽  
European Monetary Union ◽  
European Monetary ◽  
The Common ◽  
Risk Free Rate ◽  
Free Rate

scholarly journals Towards a Common European Monetary Union Risk Free Rate

2010 ◽  
Author(s):  
Sergio Mayordomo ◽  
Juan Ignacio Peña ◽  
Eduardo S. Schwartz
Keyword(s):  
Monetary Union ◽  
European Monetary Union ◽  
European Monetary ◽  
Risk Free Rate ◽  
Free Rate

scholarly journals Towards a Common European Monetary Union Risk Free Rate

2009 ◽  
Author(s):  
Sergio Mayordomo ◽  
Juan Ignacio Peña ◽  
Eduardo Schwartz
Keyword(s):  
Monetary Union ◽  
European Monetary Union ◽  
European Monetary ◽  
Risk Free Rate ◽  
Free Rate

scholarly journals Potential Hidden Losses for Slovakia as a Member of the European Monetary Union

2013 ◽  
Vol 13 (1) ◽  
pp. 24-51
Author(s):  
Jozef Stískala
Keyword(s):  
Financial Markets ◽  
Monetary Union ◽  
European Monetary Union ◽  
Slovak Republic ◽  
Balance Sheet ◽  
European Monetary ◽  
European Crisis ◽  
European System ◽  
The Common ◽  
European Stability Mechanism

Abstract Aim of this paper is to evaluate solutions for European crisis in context of Slovak participation in rescue mechanisms. The most evident element is the European stability mechanism. There is no problem with estimation of the potential losses caused by the eurozone break-up for the Slovak Republic regarding ESM. But there are other mechanisms used mainly by the ECB as monetary instruments for stabilization of the financial markets. ECB via these instruments bears potential risk of losses regarding default of the member state(s) that could damage its balance sheet. The Protocol on the statute of the European system of central banks and ECB says that losses from the common mechanisms should be borne by eurozone member states according to their share in the ECB´s capital. It is inevitable for the Slovak Republic to realize the size of its exposure via European programmes on the peripheral economies to maintain appropriate attitude as far as the eurozone issues are concerned. The author therefore tries to reveal potential hidden losses for Slovakia as a member of the European monetary union that are not explicitly seen.

The Effect of Membership in the European Monetary Union on Trade Between Member Countries (An Empirical Study)

2006 ◽  
Author(s):  
Ihor Soroka
Keyword(s):  
Monetary Union ◽  
European Monetary Union ◽  
Bilateral Trade ◽  
Trade Agreement ◽  
Monetary Integration ◽  
European Monetary ◽  
Trade Relations ◽  
Euro Adoption ◽  
Short Period ◽  
Short Run

The question of whether or not to adopt the euro is a very important one, not only for the 13 European Union members that do not share the same currency, but also for future EU candidates. Current literature on the effect of the euro on trade is scarce since the European Monetary Union (EMU) was officially created in 1999, and up until recently there has not been enough data to analyze this issue. This paper aims to estimate the effect of the euro on trade between member countries using the standard gravity model of trade. Using data from current 25 EU members over the period from 1997 to 2004, I show that higher trade volumes between EMU members cannot be attributed to the adoption of the euro. I find evidence that the euro adoption has had a short-run effect on bilateral trade and that this effect is eliminated over a short period of time. My findings suggest that members of the EMU trade on average from 8.8% to 47% more compared to non-members depending on the type of regression used, while members of the Free Trade Agreement trade 61.3% more. The effect of the euro on trade is eliminated as soon as I control for country-pair specific effects that include the FTA effect as well as history of trade relations between two countries. I conclude that the adoption of the euro should be seen as a final step in the European economic and monetary integration for countries that already benefit from relatively high volumes of bilateral trade. Full text availale at: https://doi.org/10.22215/rera.v2i1.166

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