The Share of European Economies in the Process of Convergence of Long-term Interest Rates in the EU in the Period of 2006–2016

Abstract

A b s t r a c t. The paper refers to convergence of interest rates of ten-year government bonds emitted by EU countries. It is an attempt to assess the participation of particular economies in this process using the so-called vertical convergence. The primary tools of analysis were panel data models with fixed effects, including models that consider the links among economies, quantified by using a distance matrix between indicators of fiscal stability comprehended as the share of public debt in GDP. The analysis was conducted for the 27 members of the EU in the period between January 2006 and November 2016.K e y w o r d s: long term interest rates; process of convergence; fiscal stability; panel data models; matrix of economic connections. J E L Classification: C10; C23; C58; E43. IntroductionAccording to the concept of fiscal stability, the value of public debt should be maintained at the level that will provide the opportunity to minimise the negative effects of its occurrence and will not impede the government's tasks implemented to stabilise the economy (Buiter, 2006, p. 2; Marchewka-Bartkowiak, 2008, p. 55

Review of Elżbieta Szulc and Dagna Wleklińska The Spatial-Temporal Analysis of the Connections of the Stock Markets Considering the Economic vs. Geographical Distance

“…The reviewed book is a spatio-temporal analysis of one of the most important issues of modern economics, which is the development of capital markets in the world and the links between them. The authors of the book have been dealing with this issue for many years and have a number of achievements in this respect (Szulc, Górna, and Wleklińska 2016;Wleklińska 2015, 2019;Szulc et al 2014). The discussed book is in a way both a summary and extension of a certain stage of their research.…”