at Google ScholarTitle data
Kraus, Lena ; Beier, Jürgen ; Herz, Bernhard:
Sudden stops in a currency union : some lessons from the euro area.
In: Scottish Journal of Political Economy.
Vol. 66
(2019)
Issue 1
.
- pp. 115-138.
ISSN 0036-9292
DOI: https://doi.org/10.1111/sjpe.12194
Abstract in another language
During the Great Financial Crisis several euro area Member States with current account deficits were subject to sharp reversals of private capital flows. We examine how the specific policy rules of the euro area’s payments system TARGET2 affects the macroeconomic adjustments to sudden stops. We find that - in the short run - public capital flows in form of TARGET2 help euro area deficit countries to stabilize output, consumption, and investment after a sudden stop of private capital inflows. In the long run, however, euro area countries suffer under a prolonged economic recovery and accumulated large public debt as well as higher welfare losses relative to euro peggers.
Further data
| Item Type: | Article in a journal |
|---|---|
| Refereed: | Yes |
| Keywords: | Sudden stops; TARGET2; credit constraint; capital flows; currency union |
| Institutions of the University: | Faculties Faculties > Faculty of Law, Business and Economics Faculties > Faculty of Law, Business and Economics > Department of Economics Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics I - International Economics and Finance Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics I - International Economics and Finance > Chair Economics I - International Economics and Finance - Univ.-Prof. Dr. Bernhard Herz |
| Result of work at the UBT: | Yes |
| DDC Subjects: | 300 Social sciences > 330 Economics |
| Date Deposited: | 08 Jan 2019 08:08 |
| Last Modified: | 10 Feb 2022 13:12 |
| URI: | https://eref.uni-bayreuth.de/id/eprint/46793 |