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Externe Working Papers
To finance resolution funds, the regulatory toolkit has been expanded in many countries by bank levies. In addition, these levies are often designed to reduce incentives for banks to rely excessively on wholesale funding resulting in high leverage ratios. At the same time, corporate income taxation biases banks’ capital structure towards debt financing in light of the deductibility of interest on debt. ...
Vienna:
SUERF,
2020,
6 S.
(SUERF Policy Briefs ; 21/2020)
| Franziska Bremus, Kirsten Schmidt, Lena Tonzer
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Externe Working Papers
We analyse the first twenty years of the euro both from an economic and an institutional perspective. We find that in particular during the period since the financial crisis, convergence as measured by a variety of indicators has not improved. Design flaws in the Eurozone institutional architecture have contributed importantly to this lack of convergence. This is why further reforms are urgently needed. ...
Bruxelles:
European Parliament,
2019,
30 S.
(In-depth Analysis)
| Kerstin Bernoth, Franziska Bremus, Geraldine Dany-Knedlik, Henrik Enderlein, Marcel Fratzscher, Lukas Guttenberg, Alexander Kriwoluzky, Rosa Lastra
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Externe Working Papers
We estimate the dynamic effects of government spending shocks, using time-varying volatility in US data modeled through a Markov switching process. We find that the average government spending multiplier is significantly and persistently above one, driven by a crowding-in of private consumption and non-residential investment. We rationalize the results empirically through a contemporaneously countercyclical ...
Berlin:
DIW Berlin,
2019,
27 S.
| Jan Philipp Fritsche, Mathias Klein, Malte Rieth
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Externe Working Papers
Against what theory predicts, large productivity gaps across sectors persist and the process of structural transformation is stagnant in many developing economies. This wedge between observed and optimal labor allocations suggests the presence of institutional and market frictions, which impose costs on the reallocation of labor from low to high productivity sectors, thus leading to sub-optimal allocations ...
Paris:
OECD,
2019,
20 S.: Anh.
(Working Paper Series / Economic Research Forum ; 1282)
| Khalid ElFayoumi, Gregory Auclair
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Externe Working Papers
Regulatory bank levies set incentives for banks to reduce leverage. At the same time, corporate income taxation makes funding through debt more attractive. In this paper, we explore how regulatory levies affect bank capital structure, depending on corporate income taxation. Based on bank balance sheet data from 2006 to 2014 for a panel of EU-banks, our analysis yields three main results: The introduction ...
Frankfurt a.M.:
ESRB,
2019,
36 S.
(Working Paper Series ; 103)
| Franziska Bremus, Kirsten Schmidt, Lena Tonzer
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Externe Working Papers
Stablecoins issued by large tech companies pose a significant challenge for traditional fiat money. In this study, we highlight the importance of a public-private-cooperation in dealing with this topic, where central banks closely work with stablecoin issuers in issuing synthetic central bank digital currency (sCBDC). This framework minimizes the risks of private money and utilises the technological ...
Bruxelles:
European Parliament,
2019,
23 S.
(Monetary Dialogue Papers)
| Chi Hyun Kim, Alexander Kriwoluzky
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Externe Working Papers
A regime shift towards increased in inflation expectations is credited with jumpstarting the recovery from the Great Depression in the United States. Germany experienced a recovery as fast and strong in the 1930s. What role did inflation expectations play at the start of this remarkable economic upturn? To answer this question, we study inflation expectations in Germany across two different methods: ...
Berlin:
HU Berlin,
2018,
45 S.
(Working Papers of the Priority Programme 1859 "Experience and Expectation: Historical Foundations of Economic Behaviour" ; 6)
| Volker Daniel, Lucas ter Steege
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Externe Working Papers
We study the role of global media during the Greek debt crisis and relate it to the transmission of events on financial actors' expectations. To identify news coverage about the Greek debt crisis, we apply topic modeling to a newly compiled dataset of over 430,000 articles from The International New York Times and Financial Times from 2009 to 2015. We identify a Greek debt crisis topic and relate it ...
Berlin:
HU Berlin,
2018,
47 S.
(Working Papers of the Priority Programme 1859 "Experience and Expectation: Historical Foundations of Economic Behaviour" ; 4)
| Volker Daniel, Magnus Neubert, Agnes Orban
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Externe Working Papers
Using data for the trades of 19 central banks intervening in currency markets, we show that leaning against the wind by individual central banks leads to "systematic intervention" in the aggregate central banking sector. This systematic intervention is driven by and impacts on the same factors that drive currency excess returns: carry, momentum, value, and a dollar factor. The sensitivity of an individual ...
SSRN,
2018,
48 S. : Anh.
(SSRN Papers)
| Marcel Fratzscher, Lukas Menkhoff, Lucio Sarno, Maik Schmeling, Tobias Stöhr
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Externe Working Papers
We propose a new instrument to identify uncertainty shocks in a SVAR model with external instruments. The instrument is constructed by exploiting variations in the price of gold around events that capture periods of changes in uncertainty. The variations in the price of gold around the events correlate with the underlying uncertainty shocks, due to the perception of gold as a safe haven asset. To control ...
München:
CESifo,
2017,
39 S.
(CESifo Working Papers ; 6327)
| Michele Piffer, Maximilian Podstawski