Who drove the boom in euro-denominated bond issues?
We make use of micro-level data for over 45,000 private bonds issued by over 5000 firms from 22 countries in 1990-2006 to analyze the impact that the launch of the EMU had on the currency denomination of the bond issues. To our knowledge, ours is the first systematic analysis of issue at the micro level. The use of the micro data allows us to distinguish between the response to the advent of the euro by new and seasoned bond issuers, and to condition on other issue characteristics. We find that the impact on new issuers is larger than on seasoned issuers and that most of the increase in the ...
The Cyprus crisis through the lens of bank investors
Last year, Cyprus joined its neighbor Greece on the list of eurozone countries in financial crisis. Although Cyprus is one of the smallest economies in the euro area, following the announcement of the official financial aid package for Cyprus on March 16, 2013, bank investors in the rest of the eurozone suffered large losses. Our analysis indicates that bank investors interpreted the Cypriot aid package as potentially forming a template for future eurozone bank restructurings, whereby bank investors would bear a higher fraction of the resolution costs. .
Convergence of long-term bond yields in the euro area
This Economic Letter takes a closer look at the effect of European Economic and Monetary Union (EMU) on long-term government bond yields in the four largest euro zone countries: France, Germany, Italy, and Spain.
The creation of the Euro and the role of the dollar in international markets
Through the post-World War II period, the U.S. dollar has been the leading currency used in international trade and debt contracts. With the creation of the euro, the dollar may finally face a challenge to its dominance in international markets. This article examines the likely effects of the euro on the international use of the dollar. Moreover, the article considers the implications for the United States and the euro area of a rise in the use of the euro and consequent fall in the use of the dollar internationally.
Greece and the Euro
Global Interdependence Center, Annual Black Tie Gala in Celebration of Greece, Philadelphia, Penn., July 25, 2007
Is there a world business cycle?
Using vehicle taxes to reduce carbon dioxide emissions rates of new passenger vehicles: evidence from France, Germany, and Sweden
France, Germany, and Sweden have recently linked vehicle taxes to the carbon dioxide (CO2) emissions rates of passenger vehicles. France has introduced a system of CO2-based purchase taxes and subsidies, whereas Germany and Sweden impose annual circulation (i.e., registration) taxes that are linear functions of CO2 emissions rates. This paper (a) compares the effects of vehicle taxes on registrations and average emissions rates across countries and (b) estimates the effect of reducing CO2 emissions rates on manufacturers? profits. The taxes have had a significant negative short-run effect on ...
Assessing the Euro three years after its launch
International bond markets and the introduction of the Euro
The extended importance of the euro
Remarks before the European Banking Congress, Frankfurt am Main, Germany, November 17, 2006 ; "While the ECB has delivered a currency that retains its purchasing power at least as well as the dollar, there are at least three reasons why the euro is unlikely to displace the dollar as the dominant international currency in the near term. First, the growth prospects of the euro area. Second, the uniqueness of EMU. Third, the benefits of incumbency."