What impact does the ECB’s quantitative easing policy have on bank profitability?
Quantitative easing (QE) affects banks’ profitability in three main ways. First, as QE drives up bond prices, banks holding such bonds see their balance sheets strengthened. Second, QE reduces long-term yields and thereb...
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What are the prerequisites for a euro-area fiscal capacity?
This paper is a background note for a presentation at the Informal ECOFIN meeting of EU finance ministers and central bank governors in Bratislava on September 9, 2016. policy contribution, summary sent to ministers, spe...
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Six lessons about “real” people, Brexit, and the EU
The result of the UK referendum on 23 June has been portrayed as a victory for “real people”. But what consequences will the result have, and how should the UK and EU now react? “…this will be a victor...
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The three dangers of Brexit
This op-ed was originally published in Bruegel, Nikkei, Nikkei Asian Review, Manager Magazin, Finance, Sina and Naftemporiki. It will also appear in Gazeta Prawna, Público and Hospodarske Noviny. As the June 23 U.K. ref...
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One market, two monies: the European Union and the United Kingdom
The issue Access to the single market is one of the core benefits of the United Kingdom’s membership of the European Union. A vote to leave the EU would trigger difficult negotiations on continued access to that market. ...
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Schriftliche Stellungnahme Bundestagsanhörung „Niedrigzinspolitik der EZB“
This Policy Contribution was prepared for the Financial Committee of the German Bundestag. It is only available in German. Zusammenfassung Reale Renditen fallen weltweit mindestens seit Anfang der 1980er Jahre, so auch i...
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What options for European deposit insurance?
The aim of this blog post is to clarify different options of how to organize European deposit insurance without yet settling on the best option. We aim to explain and to highlight what different options can and cannot ac...
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Euro area governance: an assessment of the “five presidents” report
the positive and missing or negative elements: European Commission President Juncker has published the long-awaited report prepared in collaboration with the presidents of the European Council, the Eurogroup, the Europea...
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Euro-area governance: what to reform and how to do it
The Issue: Reform of the governance of the euro area is being held back by disagreement on what is at the root of the euro area’s woes. Pre-crisis, the euro area suffered from the built-up of financial imbalances, price ...
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