This paper is interested in linking formally external disequilibriums to the sovereign debt crisis the EMU is experiencing since 2009. Relying on the CHEER approach that connects the goods market to the capital market, we show that when a country belonging to a monetary union faces external disequilibrium relative to its main partner, the corresponding interest rate differential increases. More...

This paper presents a sequential model suited to analyze transitions between equilibria. Disequilibrium dynamics are obtained from a standard monopolistic competition model, by introducing a sequential structure and reasonable hypotheses about technology, finance constraints, expectation formation, and the wage setting mechanism. The response to shocks crucially depends on the institutional fea...

There is no scarcity of empirical studies into the causes of capital flight or the associated attempt to relate the phenomenon to economic growth and other macroeconomic stability indicators. Studies that undertook that include Onwuoduokit, (2002), Ajayi (1992, 2002) Pastor (1990), among others. The emerging list of causal variables is equally diverse ranging from balance of payments disequilib...

Economic theory has recently begun to consider the economic impact of narratives. Narrative economics can also be extended analysis economic–political effect narratives in context European core–periphery divide, which intensified after sovereign-debt crisis. The dominant narrative crisis placed a lot responsibility on southern member countries. With outbreak COVID-19 emergency, this returned in...

Abstract Research background Every country attempts to improve its balance of payments (BOP) position enhance macroeconomic policy. Algeria, like many developing countries, is experiencing a BOP deficit. This raises concerns about the reasons for this deficit and prioritizes quest potential answers. Purpose In context Monetary Approach (MABP), paper investigates long-run relationship between do...

At one level or another, economic processes make it possible for diverse individuals to coordinate their activities. Although microeconomists have long recognized this insight, and purport to explain it with their tools, macroeconomists often seem to lose sight of the centrality of coordination when they focus on the movements of, and relationships among, aggregate variables. One problem with e...

Against the backdrop of invariant financial and economic reforms, there are presumptive changes in confines speed with which target variables respond to Reserve Bank India (RBI) policy signals. The result transmission lags from monetary real sector is unmistakable. empirical approach used this study a natural progression VAR model videlicet, co-integration, error correction techniques overcome ...

What problem the Fed and other central banks are solving by printing money letting interest rates fall to zero is focus of this paper. This activity does not appear affect nominal GDP or inflation prior COVID, yet bank liabilities have continued rise. suggests presence rising cash demand that has prevented excess pressures from emerging. While there was some hope quantitative easing would be a ...

Cwik, Paul. 2005. "The Inverted Yield Curve and the Economic Downtum,"New Perspectives on Political Economy: A Bilingual Interdisciplinary Journal 1(1): 1-35. __. 2004 "An Investigation of Inverted Yield Curves and Economic Downturns," Ph.D. dissertation, Aubum University, found at: http://www.mises.org/etexts/cwik-dissertation.pdf. Garrison, Roger. 2001. Time and Money: The Macroeconomics of C...