The euro area periphery and imbalances: Is it an Anticipation Story?

Siena, Daniele

doi:10.1016/j.red.2020.09.006

Search citation statements

Order By: Relevance

Paper Sections

Select...

Household1

Introduction1

Citation Types

Supporting

Mentioning

Contrasting

Year Published

2021

2024

Publication Types

Select...

Article6

Relationship

Self Cite1

Independent5

Authors

Journals

Cited by 14 publications

(2 citation statements)

References 72 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The household side of the economic is a simplified version of Siena (2021), where domestic representative household maximizes the present value of expected lifetime utility:…”

Section: Householdmentioning

confidence: 99%

Questioning the puzzle: Fiscal policy, real exchange rate and inflation

Ferrara

Metelli

Natoli

et al. 2021

Journal of International Economics

Self Cite

View full text Add to dashboard Cite

“…The household side of the economic is a simplified version of Siena (2021), where domestic representative household maximizes the present value of expected lifetime utility:…”

Section: Householdmentioning

confidence: 99%

Questioning the puzzle: Fiscal policy, real exchange rate and inflation

Ferrara

Metelli

Natoli

et al. 2021

Journal of International Economics

Self Cite

View full text Add to dashboard Cite

“…The structure of trade outside the euro area has also been invoked (Chen, Milesi-Ferretti, and Tressel, 2012). More recently, Siena (2021) uses an estimated DGSE model to show that the Euro triggered an anticipation of narrowing interest rate spreads in the future and that anticipation effects matter in the building-up of imbalances.…”

Section: Introductionmentioning

confidence: 99%

Heterogeneity, convergence and imbalances in the Euro area

Auray¹,

Eyquem²

2022

Revue De l'OFCE

View full text Add to dashboard Cite

The inception of the euro allowed countries from the periphery to experience a large fall in the cost of borrowing. Lower nominal rates were only partially offset by lower inflation rates. We rationalize this real interest rate reversal using a two-region model of a monetary union where, consistently with real interest rate data, discount factors are initially heterogeneous, leading the periphery to be borrowing-constrained. We model the inception of the euro as a partial convergence process in inflation rates and a slow rise in the discount factor of the periphery, relaxing the borrowing constraint. This simple set-up accounts for the bulk of post-euro fluctuations in both regions. In particular, it replicates very well the observed joint dynamics of current accounts and terms of trade.

show abstract

Climate policy and China's external balances

Zheng,

Liu,

2024

Emerging Markets Review

View full text Add to dashboard Cite

The euro area periphery and imbalances: Is it an Anticipation Story?

Cited by 14 publications

References 72 publications

Questioning the puzzle: Fiscal policy, real exchange rate and inflation

Questioning the puzzle: Fiscal policy, real exchange rate and inflation

Heterogeneity, convergence and imbalances in the Euro area

Climate policy and China's external balances

Contact Info

Product

Resources

About