Skip to main content
6 votes

Why don't most of the highly educated people in poorer part of Europe migrate to the Western part?

There are numerous reasons why one would want to stay in a particular country even though earning power is lower. These are usually summarized as "frictions" in the labor market. Culture, ...
RegressForward's user avatar
6 votes

Where does the extra money come from when a new country joins the Euro and converts its currency?

Yes the European Cenral Bank issues the extra quantity of money (as for the actual printing there are factories that print euros in many member countries of the EU, under the control of the ECB). ...
Alecos Papadopoulos's user avatar
4 votes
Accepted

Are there economic reasons for Denmark not to use euro?

There are economic reasons for Denmark not to use the euro. Although, as a Dane, I must say most people voted against the euro to make a protest vote against "European elites", there are ...
WilliamT's user avatar
  • 1,833
3 votes

Why are German bonds used as the reference for the calculation of Eurozone bond spreads?

German bonds placed as a reference in the eurozone is a form of tacit understanding and i don't think you will find official conventions about this. This practice comes from market Finance pricing ...
keepAlive's user avatar
  • 1,425
3 votes

Why don't most of the highly educated people in poorer part of Europe migrate to the Western part?

Occupational licensing may be one reason why: Occupational licensing is not unique to the United States. Based on information gathered in 2012 from the then twenty- seven nations in the ...
BKay's user avatar
  • 16.3k
3 votes

Should Finland leave the eurozone?

In the present legal environment it's not possible for a country to exit just the Eurozone voluntarily, by itself. The only sure way is the complicated scenario in which a country would leave the EU ...
the gods from engineering's user avatar
3 votes

How can the Euribor 1-week rate be less than the ECB deposit rate?

Update: today we have ESTR overnight bank rate =1.40% Euro deposit facility rate =1.50% 1week Euribor =1.39% So the situation persists even though rates are much higher. The reason that ESTR can be ...
dm63's user avatar
  • 1,248
2 votes

Are there economic reasons for Denmark not to use euro?

The reason Denmark is not using the Euro is not because of economic reasons. Denmark rejected membership of the eurozone at a referendum held on 28 September 2000. 87.6% of eligible voters turned out, ...
AKdemy's user avatar
  • 4,122
2 votes

Wages are lower than 30 years ago in Italy, why?

There are several reasons for this. Stagnant Labor Productivity First, the wages are typically highly correlated with labor productivity (Strauss and Wohar, 2004). This should make intuitive sense, ...
1muflon1's user avatar
  • 56.4k
2 votes

How are sovereign bond interest rates determined?

What you show on the picture is not the value of the coupon but the bond yield. For example, for a zero coupon bond to maturity of a bond is calculated: $$YTM = \left(\frac{FV}{ P}\right)^{1/t}-1$$ ...
1muflon1's user avatar
  • 56.4k
2 votes
Accepted

What are the most plausible scenarios for Eurozone economics without Nord Stream 1 gas?

Has there been a similar situation? Can we use data from 1979 oil crisis? There were several situations that were somewhat similar. Oil crisis of 1979 is good example of similar shock (although OPEC ...
1muflon1's user avatar
  • 56.4k
1 vote

How would Greece "temporarily" leave the Eurozone?

ThereĀ“s several possibilities, but they are all speculative. My guess is that its not too hard to tell a story like this one: They could leave the monetary union, declare all local deposits and ...
Fix.B.'s user avatar
  • 2,658
1 vote
Accepted

How do U.S. treasury yields impact yields of other sovereign debt markets?

For free-floating sovereign borrowers (e.g., Japan, Canada, UK, and the euro as a bloc (the member countries are pegged versus each other), short-term bond yields are largely determined by the ...
Brian Romanchuk's user avatar
1 vote

Why do Eurozone members have a commonly higher Debt-to-GDP ratio?

They've already adopted the Euro (from which there's no "easy way out") so the convergence criteria is just dead letter after that... The EU has a procedure called the EDP (Excessive Deficit ...
the gods from engineering's user avatar
1 vote

Greek Debt Crisis

If you borrow money from person A and lend it to person B, how does person B's default prevent you from paying back what you owe to person A? That hypothetical situation is essentially the same ...
Iñaki Viggers's user avatar
1 vote

Why did it take so much QE by the ECB to raise the Eurozone inflation to 2%?

Because commercial banks have used injected liquidities to consolidate their balance sheet instead of stimulating demands by creating credits (that did not previously exist when they make loans). This ...
keepAlive's user avatar
  • 1,425

Only top scored, non community-wiki answers of a minimum length are eligible