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.

Filter by
Sorted by
Tagged with
0
votes
0answers
19 views

What is the optimal fiscal transfer rate between regions in a currency union?

I'm aware of the theory of optimal currency areas, and that both the Euro and the US dollar* are technically not optimal. This would tend to cause their optimal monetary policy to diverge over time. ...
1
vote
0answers
12 views

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 ...
0
votes
0answers
3 views

Lower monthly inflation at the beginning of the year

Good afternoon, I just looked at several EU HICP time series, and what struck me was the fact that quite often the monthly inflation rate was way lower (even negative) in January/February, at least in ...
0
votes
1answer
46 views

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 ...
1
vote
2answers
63 views

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 ...
2
votes
2answers
127 views

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 ...
1
vote
0answers
15 views

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 ...
3
votes
1answer
54 views

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? ...
1
vote
2answers
188 views

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 ...
5
votes
1answer
82 views

How would Greece “temporarily” leave the Eurozone?

Amongst the negotiations between the Greece and the Eurozone leaders, there currently exists the possibility that Greece will leave the Eurozone for five years. Does this imply Greece would have to ...
5
votes
3answers
980 views

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 ...
1
vote
2answers
93 views

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 ...
13
votes
3answers
2k views

Should Finland leave the eurozone?

Finland's economic recovery from the shock of the global financial crisis of 2007-8 has been very weak. The country has been in recession for the past three years, with GDP expected to expand by only ...