scholarly journals Public debt, GDP and the Sovereign Debt Laffer curve: A country-specific analysis for the Euro Area

2020 ◽  
Vol 13 (3) ◽  
pp. 280-295
Author(s):  
Diptes Bhimjee ◽  
Emanuel Leão
Keyword(s):  
Euro Area ◽  
Public Debt ◽  
Sovereign Debt ◽  
Laffer Curve ◽  
Specific Analysis ◽  
Country Specific

scholarly journals How Do Estimates of Inflation Persistence in Malta Compare with Other EU Countries?

2020 ◽  
Vol 12 (7) ◽  
pp. 31
Author(s):  
Brian Micallef ◽  
Reuben Ellul
Keyword(s):  
Euro Area ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Sovereign Debt Crisis ◽  
Inflation Persistence ◽  
Eu Countries ◽  
Gdp Growth Rate ◽  
European Sovereign Debt Crisis ◽  
Specific Factors ◽  
Country Specific

After the European sovereign debt crisis in 2012, inflation has been unexpectedly low across most of the economies making up the euro area, as well as the Monetary Union aggregate, with economists referring to this phenomenon as the “missing inflation” puzzle. As the smallest and one of the most open economies in the euro area, Malta has also registered a period of low inflation post-2012, despite registering an average GDP growth rate of 6.9% per annum over the period 2013-2019. This paper estimates the extent of inflation persistence of Malta and a number of EU economies for both the pre- and post-2012 period. Measures of persistence are computed as the sum of autoregressive coefficients derived from univariate regressions on both aggregated and disaggregated inflation series. Estimates of persistence in Malta have increased when the sample covers the post-2012 period. In terms of the main sub-components, energy inflation has a substantially higher persistence compared to the pre-2012 period, reflecting both external and country-specific factors. Most other EU countries also reported an increase in persistence when including the post-2012 period in the sample although the estimates for Malta, both at the aggregate and disaggregated indices, remain less persistent.

Eurobonds: Three Lessons from China’s “Debt Centralization/Decentralization” Experience

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Zhiyong An
Keyword(s):  
Moral Hazard ◽  
Euro Area ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Budget Constraint ◽  
Sovereign Debt Crisis ◽  
The European Union ◽  
Member States ◽  
Institutional Mechanism ◽  
Previous Series

Abstract Eurobonds, dubbed as Coronabonds in the context of the current coronavirus crisis, are being hotly debated among the euro area member states amid the COVID-19 pandemic. The debate is in many ways a retread of the euro area sovereign debt crisis of 2011–2012. As China’s “debt centralization/decentralization” experience is comparable with the introduction of Eurobonds in the European Union (EU) in terms of institutional mechanism design, we review our previous series of studies of China’s “debt centralization/decentralization” experience to shed some light on the Eurobonds debate. We obtain three key lessons. First, the introduction of Eurobonds in EU is likely to soften the budget constraint of the governments of the euro area member states. Second, it is also likely to strengthen the moral hazard incentives of the governments of the euro area member states to intentionally overstate their budget problems. Finally, the magnitudes of the moral hazard effects generated by the introduction of Eurobonds in EU are likely larger than their respective counterparts in China.

Country-specific euro area government bond yield reactions to ECB’s non-standard monetary policy program announcements

2020 ◽  
Vol 21 (4) ◽  
pp. 417-474 ◽  
Author(s):  
Ralf Fendel ◽  
Frederik Neugebauer
Keyword(s):  
Monetary Policy ◽  
Euro Area ◽  
Yield Reduction ◽  
Government Bond ◽  
Bond Yields ◽  
Bond Yield ◽  
Current Spread ◽  
Policy Program ◽  
Government Bond Markets ◽  
Country Specific

AbstractThis paper employs event study methods to evaluate the effects of ECB’s non-standard monetary policy program announcements on 10-year government bond yields of 11 euro area member states. Measurable effects of announcements arise with a one-day delay meaning that government bond markets take some time to react to ECB announcements. The country-specific extent of yield reduction seems inversely related to the solvency rating of the corresponding countries. The spread between core and periphery countries reduces because of a stronger decrease in the latter. This result is confirmed by letting the announcement variable interact with the current spread level.

scholarly journals Sustainable Financing for Sustainable Development: Understanding the Interrelations between Public Investment and Sovereign Debt

2018 ◽  
Vol 10 (11) ◽  
pp. 3901 ◽  
Author(s):  
Ibrahim Ari ◽  
Muammer Koc
Keyword(s):  
Sustainable Development ◽  
Public Debt ◽  
Sovereign Debt ◽  
Financial Models ◽  
Public Investment ◽  
The United States ◽  
Evidence Based ◽  
Public Infrastructure ◽  
Quantitative Evidence ◽  
Sustainable Financing

This study investigates the causal relationship between public investment and sovereign debt (i.e., external and domestic public debt) with respect to the limits of public-debt sustainability for four countries with the highest GDP (i.e., the United States, China, Japan, Germany) during the period of 2000–2015. In summary, this study establishes quantitative evidence based on empirical findings to support the claim that sovereign debt is harmful to the financing of public infrastructure if it breaches certain thresholds, as proposed in this study, and according to the literature. By this approach, the findings enable us to make recommendations about the need for mobilizing domestic resources and innovating new financial models to promote sustainable development within the limits of sustainable public debt. In short, this paper concludes that performing a project for sustainable development by implementing unsustainable financing models will always end up with unsustainable economic outcomes.

scholarly journals Macroeconomic forecasting in the Euro area: Country specific versus area-wide information

2003 ◽  
Vol 47 (1) ◽  
pp. 1-18 ◽  
Author(s):  
Massimiliano Marcellino ◽  
James H Stock ◽  
Mark W Watson
Keyword(s):  
Euro Area ◽  
Macroeconomic Forecasting ◽  
Euro Area Country ◽  
Country Specific
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