Questions tagged [euro-area]
The euro area consists of those Member States of the European Union that have adopted the Euro as their currency. Monteray policy regarding the Euro is conducted by the European Central Bank.
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Can a Federal District Bank be negative in SOMA shares after interdistrict settlement?
I looked at publications examining whether the FED interdistrict settlement could apply to the Target-2 system. While most of my questions were answered, I am still left with one big issue I could not ...
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Statistics on Hiring and Separations in European countries?
I am looking for statistics on Hiring and Separations in European countries. That is, data similar to what is produced :
monthly by BLS in the JOLTS in the US.
quarterly by Dares in France (quarterly ...
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Does the ECB issue staff projections for its own interest rates, as the Fed does?
I can see that it has a 'projections' segment here:
ECB staff forecast
But it seems to take market rates as reference.
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Why does the Croatia-Euro to USD exchange rate differ from the Eurozone-Euro to USD exchange rate in the list of Treasury reporting rate of exchange?
Looking at the list of Treasury reporting rate of exchange, I see that the Croatia-Euro to USD exchange rate (0.925) differ from the Eurozone-Euro to USD exchange ...
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What are the most plausible scenarios for Eurozone economics without Nord Stream 1 gas?
As you may have heard, the Nord Stream 1 and 2 gas pipelines are no longer available.
It is possible to foresee the most probable economic outcomes of that events to the Eurozone area? My main focus ...
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Eurozone crisis between 1990s-2010(?)
Earlier when the Eurozone is established, the countries have a problem of competitiveness: the growth of wages is much faster than the growth of productivity. This high salary results in high prices ...
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How can the Euribor 1-week rate be less than the ECB deposit rate?
Here is my understanding:
The European Central Bank (ECB) deposit rate is the interest rate the ECB gives a bank for holding a deposit with them.
Currently this rate is -0.5%. Which means that it ...
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Are there economic reasons for Denmark not to use euro?
Danish central bank pursues a a fixed exchange rate policy against euro. If they do so, why won't they just directly use euro instead? It seems that having such policy eliminates the main advantage of ...
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Wages are lower than 30 years ago in Italy, why?
Recently I've seen some statistics about wage growth in the European Union in the last 30 years and surprisingly, Italy is the only country with a negative value.
So, what is the root of this problem? ...
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How are sovereign bond interest rates determined?
They are a lot of questions about the price of a bond or its yield.
Why do people buy negative interest rate bonds?
How did Portugal draw down their interest rates on pubic debt?
... and so on
Mine ...
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How do U.S. treasury yields impact yields of other sovereign debt markets?
I read somewhere that when the U.S. Treasury yields rise, it will also have a "gravitational pull" on yields of other sovereign debt markets. For example, when the U.S. Treasury yields rise, ...
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What would happen to Eurozone and EU if Italy defaults on its debt?
Question
What would happen to Eurozone and EU if Italy defaults on its debt?
Background & disclaimer
This direct question is an attempt to amend the more expanded question.
Given that this ...
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What exactly is the risk Italy's high debt to GDP ratio poses to Eurozone and EU? [closed]
Background
Us laymen read all around that Italy's weak economy and its high government debt/high debt to GDP ratio is threatening the financial stability and health of Eurozone and EU. However, little ...
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How could Euro bonds serve as a "safe haven" asset in the long run?
The German Bund has been the major safe-haven asset in the Eurozone despite the advent of the Euro. However, I noticed that there is mounting anticipation around a potential 750 billion worth of Euro ...
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How reliable is ECB's financial derivatives data?
I am trying to use QSA financial derivatives data retrieved from the ECB's database (this is actually compiled by ECB and Eurostat).
To be more specific, the data is: Financial derivatives held as ...
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Is there a clear timeline of ECB/Eurosystem's changes to the defintion of M3 (with regard to repos)?
I found that circa 2012 the ECB/Eurosystem changed their definition of M3 to exclude at least some repos, which previously were included. According to a 2014 Bundesbank publication, the change ...
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Why do Eurozone members have a commonly higher Debt-to-GDP ratio?
As you could find out from the map, among 22 countries whose debt-to-gdp ratio is above 50%, only 7 are not Eurozone members, and from which only UK is comparably large economical entity.
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How is seigniorage redistributed in the Eurozone?
An ECB page notes that:
As euro banknotes travel freely across borders, at any one time the number of banknotes in circulation registered at each national central bank can vary enormously. The ...
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Greek Debt Crisis
If the Greek government defaults on its bonds issued by French and German investment banks, how does that prevent the French and German governments from paying back the money that they owe to ...
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Why did it take so much QE by the ECB to raise the Eurozone inflation to 2%?
From 2015 to 2018 the ECB increased the money supply by around 20% (around 6% y/y), with a GDP increase rate under 1%. Yet the inflation rate remained under 2%. A back-of-the-envelope calculation ...
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Why don't most of the highly educated people in poorer part of Europe migrate to the Western part?
There are a lot of people working in universities in countries like Ukraine, Belarus, Romania, Bulgaria, Poland, and so on with low salaries. Those people have high skills and education.
I saw some ...
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What is the size of European SMEs in case of money flow and revenue?
I want to focus my product on SMEs (B2B financial service). So to research the market size I decided to check the numbers first. I had not a very productive time studding EU statistic data on their ...
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Where does the extra money come from when a new country joins the Euro and converts its currency?
Whenever a new country becomes a member of the Eurozone, they convert all their local currency into the Euro. What I don't understand is where does this huge new volume of Euros come from overnight? ...
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Why are German bonds used as the reference for the calculation of Eurozone bond spreads?
I can't find the source, either on the the ECB homepage or any other internet source to verify why German bonds are used as a reference point in the eurozone when talking about risk spreads for other ...
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Why are European countries happy to be outside Eurozone?
In EU countries like Poland, Czech Republic, Hungary, etc, people are happy that they are not in Euro zone and Euro crises like that of Greece do not affect their economics.
However, some European ...
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How would Greece "temporarily" leave the Eurozone?
Amongst the negotiations between Greece and the Eurozone leaders, there currently exists the possibility of Greece leaving the Eurozone for five years.
Does this imply Greece would have to use a ...
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Why is the Euro a bad idea compared to other currencies?
Many economists, including Nobel laureates Paul Krugman and Joseph Stiglitz, have said that the Euro was a bad idea from the beginning and is a major reason for all the current economic problems. My ...
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Can banks maintain Euro accounts if the country they're in leaves the eurozone?
If a country forcibly leaves the Eurozone, is it possible for banks within this country to maintain existing euro deposits? Or does leaving the eurozone mean those deposits are automatically ...
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Should Finland leave the eurozone?
Finland's economic recovery from the shock of the global financial crisis of 2007–2008 has been very weak. The country has been in recession for the past three years, with GDP expected to expand by ...
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How could the Euro zone be broken up in an ordered way?
Let’s assume that the members of Euro zone all agreed that it would end in 18 months time with each country getting its own currency.
What process could be put in place to allow this to happen ...
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When a country adopts the Euro, what happens to its debt?
When a country, say Greece, adopted the Euro as its currency, what happened to the debt that was based on the Drachma? Was it converted into Euros?
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