https://www.esm.europa.eu/publications/european-government-bond-dynamics-and-stability-policies-taming-contagion-risks Download PDF: Working Paper 8 This paper analyses bond yields of euro area sovereign bonds and finds that the distance between core and periphery has narrowed since the EFSF/ESM was established. Author: Martin Hillebrand | European Stability Mechanism with Peter Schwendner, Martin Schuele, Thomas...

https://www.esm.europa.eu/publications/regional-responses-covid-19-crisis-comparative-study-economic-policy-and-institutional Title: Regional responses to the Covid-19 crisis: a comparative study from economic, policy, and institutional perspectives Download PDF: Discussion Paper 18 Authors: Graciela Schiliuk (ESM), Tullio Buccellato (ESM), Jens Lapointe-Rohde, Georgios Palaiodimos* Habib Attia – Arab Monetary Fund (AMF)...

https://www.esm.europa.eu/publications/does-public-debt-produce-crowding-out-effect-public-investment-eu Download PDF: Working Paper 36 This paper shows the detrimental effect of government debt on public investment in the EU Authors: Mattia Osvaldo Picarelli (European Stability Mechanism), Willem Vanlaer (Hasselt University), Wim Marneffe (Hasselt University) Abstract: This paper exploits a panel...

https://www.esm.europa.eu/publications/reform-european-stability-mechanism Download PDF: Discussion Paper 14 Authors: Jasper Aerts and Pedro Bizarro Abstract: This article seeks to explain the main aspects of the reform of the European Stability Mechanism, as agreed in principle by the leaders of the euro area member states. The article focuses particularly on the ESM’s...

https://www.esm.europa.eu/publications/does-imf%E2%80%99s-official-support-affect-sovereign-bonds-maturities Author: Aitor Erce Abstract: This paper looks at whether the tendency of some governments to borrow short term is reinforced by financial support from the International Monetary Fund. I first present a model of sovereign debt issuance at various maturities featuring endogenous liquidity crises and...

https://www.esm.europa.eu/publications/analysing-cross-currency-basis-spreads Download PDF: Working Paper 25 This paper studies the drivers behind the EUR/USD basis swap spreads widening Authors: Jaroslav Baran and Jiří Witzany Abstract: This paper investigates the drivers of cross-currency basis spreads, which were historically close to zero but have widened significantly...

https://www.esm.europa.eu/publications/leaning-against-persistent-financial-cycles-occasional-crises Title: Leaning against persistent financial cycles with occasional crises Download PDF: Working Paper 56 This paper quantitatively investigates conditions under which a leaning against the wind (LAW)-type monetary policy is advisable to address risks to financial stability. Authors: Thore Kockerols...

https://www.esm.europa.eu/publications/debt-collection-relief-provision-60-years-official-debt-restructurings-through-paris Download PDF: Working Paper 20 Download dataset This paper shows how over 60 years the Paris Club has evolved from a debt collector to a provider of sequential debt relief Authors: Gong Cheng, Javier Diaz-Cassou and Aitor Erce Abstract: Despite the frequency of official debt restructurings, little...

https://www.esm.europa.eu/publications/evaluation-report-analytical-capability-esm ForewordFollowing two large evaluation exercises conducted in 2016–2017 and 2019–2020 led by High-Level Independent Evaluators on European Financial Stability Facility (EFSF)- and European Stability Mechanism (ESM)-supported financial assistance programmes, the ESM Evaluation function was formally...

https://www.esm.europa.eu/publications/evaluation-report-past-programmes The Evaluation Report evaluates the relevance, effectiveness, and efficiency of EFSF and ESM financial assistance in safeguarding the financial stability of the euro area and its members. It primarily focuses on aspects that were not covered in detail by other evaluations, such as financing and the...

https://www.esm.europa.eu/publications/distributional-implications-euro-area-crisis-evidence-macroeconomic-adjustment-greece Title: The distributional implications of the euro area crisis: Evidence from macroeconomic adjustment in Greece and Portugal Summary: The paper explores the distributional effects of economic crises and the resulting economic adjustments on household income in Greece and Portugal. Authors: Misina...

https://www.esm.europa.eu/publications/how-programme-evaluations-can-benefit-quality-life-considerations Title: How programme evaluations can benefit from quality of life considerations Download PDF: Discussion Paper 19 Authors: Olga Francová, Kari Korhonen and Dušan Kovačević Abstract: This study considers to what extent quality of life criteria, as defined in the Organisation for Economic Cooperation...

https://www.esm.europa.eu/publications/cross-border-capital-flows-and-capital-markets-union-quo-vadis-europe Download PDF: Discussion Paper 3 This discussion paper gathers together the contributions made at a seminar on cross-border capital flows and capital markets union organised by and held at the ESM in December 2017. The contributions reflect the state of affairs at the time of the event. Authors...

https://www.esm.europa.eu/publications/banking-crises-and-sovereign-defaults-emerging-markets-exploring-links Download PDF: Banking Crises and Sovereign Defaults in Emerging Markets: Exploring the Links Author: Aitor Erce | Senior Researcher at the European Stability Mechanism with Irina Balteanu Abstract: This paper provides a set of stylised facts on the mechanisms through which banking and sovereign...

https://www.esm.europa.eu/publications/are-governments-matching-citizens%E2%80%99-demand-better-lives-new-approach-comparing Download PDF: Working Paper 39 This paper proposes two composite indices of well-being to examine the gap between a government’s welfare outcome and its citizens’ desired well-being and how this “welfare gap” may influence utility. Author: Luisa Corrado (University of Rome Tor Vergata) and Giuseppe...

https://www.esm.europa.eu/publications/green-paper-building-capital-markets-union Public Consultation The ESM has submitted its response to the European Commission’s public consultation “Building a Capital Markets Union”. The ESM welcomes the aim to create a Capital Markets Union, as it would promote financial stability and economic growth by creating alternative funding channels...

https://www.esm.europa.eu/publications/eu-fiscal-rules-reform-considerations Title: EU fiscal rules: reform considerations Download PDF: Discussion Paper 17 Authors: Olga Francová, Ermal Hitaj, John Goossen, Robert Kraemer, Andreja Lenarčič, and Georgios Palaiodimos Note: Andreja Lenarčič and Georgios Palaiodimos contributed to this paper when employed at the ESM. Abstract...

https://www.esm.europa.eu/publications/tackling-sovereign-risk-european-banks Download PDF: Discussion paper 1 This discussion paper analyses the trade-offs involved in reforming the regulatory treatment of sovereign exposures in European banks. Authors: Andreja Lenarčič | Economist and policy strategist at the European Stability Mechanism Dirk Mevis | Banking sector expert...

https://www.esm.europa.eu/publications/catalytic-imf-gross-flows-approach Download PDF: Working Paper 9 This paper argues that the strongest channel through which the IMF stabilises a borrowing country’s financial flows is via its effect on the domestic banking system. Author: Aitor Erce | Senior Researcher at the European Stability Mechanism with Daniel Riera-Crichton |...

https://www.esm.europa.eu/publications/us-corporate-tax-rate-cuts-spillovers-irish-economy Download PDF: Working Paper 38 This paper shows that past US corporate income tax rate cuts created small but persistent positive spillovers to the Irish economy. Author: Daragh Clancy (ESM) Abstract: We examine spillovers to the Irish economy from US corporate income tax rate cuts and find they...