Risk Sharing and Monetary Policy Transmission

Hauptmeier, Sebastian; Holm‐Hadulla, Fédéric; Renault, Théodore

doi:10.2139/ssrn.4275322

Cited by 4 publications

(7 citation statements)

References 52 publications

(73 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Very recently, Alcidi et al (2023) highlighted that the fiscal transfer channel (which also includes transfers from EU Funds) amongst countries belonging to the Euro Area (11 countries) was non‐significant between 1998 and 2016, and a tool for income stabilization (accounting for 1% of smoothing) with 4–5 years differentiating. Finally, Hauptmeier et al (2022), using regional data for a country‐by‐country analysis of 10 EMU members, found a non‐significant role for the fiscal transfer channel in 7 out of 10 cases. A positive smoothing role was detected only in Italy, Austria and France.…”

Section: Empirical Findingsmentioning

confidence: 99%

“…Basile and Girardi (2010) first investigated risk-sharing amongst 144 EU NUTS-2 regions (belonging to EU15) over the period 1995-2005, focusing on the relationship with industrial specialization. More recently, Hauptmeier et al (2022), using regional (NUTS-2) data for a country-by-country analysis of 10 EMU members, found a non-significant role of the fiscal transfer channel in 7 out of 10 cases. To the best of our knowledge, these are the only contributions that address inter-regional risk-sharing in a sample of cross-national EU NUTS-2 regions.…”

Section: Inter-regional Risk-sharing and The Eu Cohesion Policymentioning

confidence: 99%

“…See, for instance, recent contributions byFiorelli et al (2022),Hauptmeier et al (2022) andAlcidi et al (2023).EU Cohesion Policy and inter-regional risk-sharing…”

mentioning

confidence: 99%

See 2 more Smart Citations

EU Cohesion Policy and Inter‐regional Risk‐sharing: First Evidence and Lessons Learned

Giua

Pericoli

Pierucci

2023

J of Common Market Studies

View full text Add to dashboard Cite

We provide the first evidence of the role played by the Cohesion Policy in terms of insurance against income shocks affecting the European Union (EU) regions. By following state‐of‐the‐art modelling, we measured income risk‐sharing amongst 270 NUTS‐2 regions over two concluded programming periods (2000–2006 and 2007–2013), distinguishing across several sub‐groups of regions characterized by different macroeconomic conditions, integration of markets and regional levels of economic disadvantage. We found that, by and large, the income risk‐sharing role of the EU Funds inflow is non‐negligible and it becomes particularly relevant in the second programming period. Further, the Cohesion Policy exerted a significant and positive role in income stabilization after the Global Financial Crisis and the Sovereign Debt Crisis and during the negative phases of the business cycle, particularly for those regions lagging or belonging to less stable countries from the macroeconomic point of view (Less Developed regions and Mediterranean EU). This novel evidence of the short‐run stabilizing effect of the Cohesion Policy aims to contribute to the debate on the role of EU institutions in improving the capacity of regions to tackle economic shocks, which is particularly relevant at the launch of the Next Generation EU.

show abstract

Section: Empirical Findingsmentioning

confidence: 99%

Section: Inter-regional Risk-sharing and The Eu Cohesion Policymentioning

confidence: 99%

See 1 more Smart Citation

EU Cohesion Policy and Inter‐regional Risk‐sharing: First Evidence and Lessons Learned

Giua

Pericoli

Pierucci

2023

J of Common Market Studies

View full text Add to dashboard Cite

show abstract

“…For instance, if the tax and transfer system systematically reallocates funds from less to more affected regions, the aggregate impact of a monetary policy tightening may be different from a scenario without this type of fiscal risk sharing. Hauptmeier et al (2022) provide empirical evidence on the relevance and nature of these interactions, based on regionally disaggregated euro area data.…”

Section: Box 3 Risk Sharing and Monetary Policy Transmissionmentioning

confidence: 99%

Challenges for Monetary and Fiscal Policy Interactions in the Post-Pandemic Era

Bonam,

Ciccarelli,

Gomes

et al. 2024

SSRN Journal

View full text Add to dashboard Cite

“…The Governing Council has repeatedly emphasized that it will continue applying flexibility in reinvesting redemptions coming due in the PEPP portfolio, with a view to countering risks to the monetary policy transmission mechanism related to the pandemic (see also Böninghausen et al, 2022). In line with this concern, some ECB research has suggested that heterogeneity in the capacity to absorb shocks via fiscal and market‐based channels could contribute to an uneven transmission of monetary policy across jurisdictions (see Hauptmeier & Renault, 2022). At the same time, ECB communications have repeatedly emphasized that deviations from the capital key will be temporary (ECB, 2022a, 2022b).…”

Section: Factors Cushioning or Exacerbating The Immediate Impact Of B...mentioning

confidence: 99%

Government bond rates and interest expenditure of large euro area member states: A scenario analysis

Grimm

Nöh²,

Wieland

2023

International Finance

View full text Add to dashboard Cite

This paper assesses the possible development of government interest expenditures for Germany, France, Italy and Spain. Until 2021, governments could anticipate a substantial further reduction in interest expenditure. This outlook has changed drastically with the surge in inflation and government bond rates. Assuming that bond rates remain at the levels implied by yield curves from December 2022, interest expenditure rises substantially. We also examined scenarios with a further upward shift in yield curves by one or two percentage points. They indicate major medium‐term risks for highly indebted member states with interest expenditure approaching or exceeding levels last observed on the eve of the euro area debt crisis. Governments should take action to achieve a decline in debt‐to‐GDP ratios towards safe levels. They need to make sure public debt remains sustainable at the higher interest rates that are required to achieve price stability in the euro area.

show abstract

Risk Sharing and Monetary Policy Transmission

Cited by 4 publications

References 52 publications

EU Cohesion Policy and Inter‐regional Risk‐sharing: First Evidence and Lessons Learned

EU Cohesion Policy and Inter‐regional Risk‐sharing: First Evidence and Lessons Learned

Challenges for Monetary and Fiscal Policy Interactions in the Post-Pandemic Era

Government bond rates and interest expenditure of large euro area member states: A scenario analysis

Contact Info

Product

Resources

About