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Our paper analyzes the causality link between renewable energy consumption and economic growth in selected Euro-Area countries. We conduct our analysis for Austria, Belgium, Finland, Germany, Spain, Italy, Portugal, and the Netherlands in the period from 1990 to 2020 by employing a recent panel causality test that takes structural breaks into account. First, we examine the stationary characteristics of data by employing a panel unit root test proposed by Bahmani-Oskooee (2014). In the second stage, we use the panel Fourier Toda Yamamoto (PFTY) test proposed by Yilanci and Gorus (2020). We find a one-way causal link between economic growth and renewable energy consumption for the panel supporting the evidence of the validity of the conservative hypothesis. Similarly, there are one-way causality runs from economic growth to renewable energy consumption in Spain, Italy, and Netherlands. Furthermore, there is a one-way causality run from renewable energy consumption to economic growth only in Finland supporting the evidence of the validity of the growth hypothesis. Nevertheless, we could not find any causality connection between renewable energy consumption and economic growth for the panel and also for Austria, Belgium, Germany, and Portugal on a country basis, thus supporting the evidence of the validity of the neutrality hypothesis. [ABSTRACT FROM AUTHOR]

This paper gives a systematic presentation of public opinion on the euro: the expected consequences, the advantages, and also the fears people have about introducing the single currency. The research also aims to identify the economic variables that may influence citizens’ attitudes towards the euro. The econometric analysis indicates that a higher level of development and higher earnings have a positive impact on public support for the euro, while the unemployment rate and corruption have a negative effect. People think that the euro will have a positive effect; the majority of citizens in the non-euro area are in favour of adopting the euro (but as late as possible); the majority were afraid of losing control over the national economic policy; people expect abuses and cheating on prices during the changeover, and increased inflation following the adoption of the euro. The two countries most opposed to the euro are Poland and the Czech Republic due to political issues. The two countries that have announced the start of the euro adoption process are Croatia and Bulgaria.

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The paper extends a standard two‐country international real business cycle model to include financial intermediation by banks of loans and government bonds. The paper contributes an explanation for both the United States relative to the Euro‐area, and the United States relative to China, of cross‐country correlations of loan rates, deposit rates, and the loan premia. It shows a type of financial retrenchment for the United States relative to both Europe and China following a negative bank productivity shock, such as during the 2008 crisis. After 2008, results suggest that the Euro‐area has been more financially integrated with the United States, and China less financially integrated. [ABSTRACT FROM AUTHOR]

Copyright of Sakarya Journal of Economics / Sakarya Iktisat Dergisi is the property of Sakarya Journal of Economics / Sakarya Iktisat Dergisi and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper asks whether institution-specific features of international financial fora affect the formation of a common EU position. Specifically, building on the literature on global financial governance and transnational policy communities, the paper examines to what extent the nature of the membership - be it political or expert-based - and the scope of the mandate - be it broad or technical - of international financial regulatory body affect the formation of a common EU position. To this end, the paper compares and contrasts the modalities through which the EU is represented in the G20 Leaders and BCBS, outlines the institutional features of these international bodies and presents the empirical evidence of two key case studies with reference to the decision to increase the financial firepower of the IMF (in the G20 Leaders) and the adoption of the Basel III accord (in the BCBS). [ABSTRACT FROM AUTHOR]

This article argues that in Euro-area economies, where the European Central Bank (ECB) cannot bail out financially distressed governments, the spending multiplier is adversely affected by the amount of public debt. A regression model on a panel of 26 EU countries over the last 16 years shows that a 10 percentage point increase in the debt-to-GDP ratio is connected to a slowdown in annual growth rates of 0.28 percentage point. Furthermore, the effectiveness of fiscal spending is adversely affected by the amount of public debt; in particular, when the public debt exceeds 150% of GDP, the growth impact of the deficit might turn negative. [ABSTRACT FROM AUTHOR]

Abstract: In this paper we look at business cycles similarities between CEE countries and the euro area. Particularly, we uncover GDP-inflation cycles by adopting a trend-cycle decomposition model which allows the trend to be either stochastic or deterministic, i.e. of the non-linear type. Once cyclical components are derived, we test for ex post restrictions at both with-in (GDP-to-inflation) and cross-country (CEECs vs. euro area) levels. Allowing for different degrees of cyclical similarity, we find that a similar inflation vs. GDP cycle is not rejected only for Poland, Lithuania, Romania and Estonia (with Latvia and the euro area being at the boundary). Looking at cross-country results, almost all countries feature a fair degree of similarity with respect to the euro area. Exceptions are Poland, Hungary, Latvia and Slovenia because of lack of a similar cycle either occurring in GDP or inflation, yet not in both. Finally, observing how concurrence between each CEECs cycle and the euro area evolved over time, we find that inflation conditional correlation increased stemming from the EU accession of most CEECs and as a result of the commodity price shock preceding 2008. Further, inflation and GDP conditional correlations receded during the course of 2009–2010, possibly resulting from more idiosyncratic adjustments in the aftermath of the crisis on the monetary/fiscal side. Interestingly, Slovenia, Slovakia, Estonia and Bulgaria display a conditional correlation pattern in GDP and inflation which roughly suggest a strong out-of-phase recovery starting from 2005. [Copyright &y& Elsevier]

We study the consequences of the entry of a structurally heterogeneous country on the well-being of the current members of a monetary union. Welfare would be increased if the new country is more open, if it has a smaller sensibility of its demand to the interest rate, and also generally if its supply function has a lower sensibility to inflation. [ABSTRACT FROM AUTHOR]

This paper analyses the accession to the euro-area by new members using a stylized new-Keynesian model. We analyze macroeconomic adjustment in the pre- and post-accession case and calculate welfare in both situations to obtain net benefit/loss from accession. It is shown how the effects of accession is related to the conduct of monetary policy and fiscal policy in the pre- and post-accession case. The simulation examples point at the potential costs that accession might entail due its consequences on monetary and fiscal policy design. These consequences from accession in terms of macroeconomic stabilization ability of monetary and fiscal policies have not always been fully acknowledged and may need more attention. [ABSTRACT FROM AUTHOR]

Finland was the only Nordic EU member to join the Third Stage of Economic and Monetary Union in 1999. Finnish membership of the euro-area was treated above all as a political issue and as such it successfully attracted broad national support. Where there were concerns about the euro, these mainly focused upon the link between euro-adoption and the future of a Nordic welfare society. Nevertheless, overall support for the single currency has been maintained in Finland during the early years of membership of the euro-area. However, the Finnish experience has not notably influenced policy formulation in the two Nordic euro-outsiders of Denmark and Sweden. [ABSTRACT FROM AUTHOR]

• This paper investigates changes in persistence caused by the COVID 19 pandemic in the US and EA yield curves. • The long term, short term and medium term factors are extracted and the persistence is proxied by estimating the autoregressive coefficient of each factor. • To examine the time varying effects, we employ a local linear estimation. • Our findings suggest that the US long term and short term factors exhibited explosive behaviour while the EA factors diminished in persistence, making the EA yield curve more predictable This paper investigates changes in persistence caused by the COVID-19 pandemic in the US and EA yield curves. We extract the long-term, short-term and medium-term factors and proxy the persistence by estimating the autoregressive coefficient of each factor. To examine the time-varying effects, we employ a local linear estimation. Our findings suggest that, during the first phases of the pandemic, the US long-term and short-term factors exhibited explosive behaviour while, at the same time, the EA factors diminished in persistence, making the EA yield curve more predictable even though the EA countries were hit by the pandemic somewhat earlier than the US. [ABSTRACT FROM AUTHOR]