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/euro-area-sovereign-ratings-analysis-fundamental-criteria-and-subjective-judgement Download PDF: Working Paper 14 This paper studies the drivers of sovereign ratings for euro area countries and finds that judgement is applied to varying degrees, and thus recommends that rating agencies increase their methodological transparency. Authors: Rudolf Alvise Lennkh and Antonello D...

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/bank-and-sovereign-risk-feedback-loops Download PDF: Working Paper 1 This paper studies the link between sovereign risks and the fragility of the banking sector pointing to the challenges of bank rescue operations for the state. Author: Aitor Erce | Senior Researcher at the European Stability Mechanism Abstract: Measures of sovereign and...

https://www.esm.europa.eu/publications/can-consumer-confidence-provide-independent-information-consumption-spending-evidence Download PDF: Working Paper 2 This paper investigates how well consumer confidence predicts households future consumption expenditure. Author: Antonello D’Agostino | Senior Economist in the Economics and Policy Strategy department with Caterina Mendicino | European Central Bank Abstract This paper...

https://www.esm.europa.eu/publications/balance-sheet-effects-foreign-reserves-and-public-policies Download PDF: Working Paper 3 This paper shows that countries can use foreign reserves to enhance their domestic economies’ resilience to potential risks from balance sheet effects. Author: Gong Cheng | Economist and policy strategist at the European Stability Mechanism Abstract: This paper shows...

https://www.esm.europa.eu/publications/government-expenditure-composition-and-fiscal-policy-spillovers-small-open-economy Download PDF: Working Paper 4 This paper shows that productive government investment can improve an economy’s external competitiveness and stimulate private investment. Author: Daragh Clancy | Senior Economist at the European Stability Mechanism with Pascal Jacquinot | European Central Bank and...

https://www.esm.europa.eu/publications/what-happened-profitability-shocks-challenges-and-perspectives-euro-area-banks Download PDF: Working Paper 5 This paper shows how multiple shocks have hit euro area bank profitability since the crisis - their effects differ by bank type and location Author: Gong Cheng | Economist and policy strategist at the European Stability Mechanism with Dirk Mevis | Banking sector expert...

https://www.esm.europa.eu/publications/collateral-damage-micro-simulation-transaction-cost-shocks-value-central-bank-collateral Download PDF: Working Paper 6 This paper analyses how changes in transaction costs may affect the value of assets that banks use to collateralise borrowings in monetary policy operations. Author: Rudolf Alvise Lennkh | Economist and policy strategist at the European Stability Mechanism with Florian...

https://www.esm.europa.eu/publications/combining-time-variation-and-mixed-frequencies-analysis-government-spending-multipliers Download PDF: Working Paper 7 This paper finds that Italian government spending shocks had a strong impact on GDP in the early 1990s and again during the most recent recession. Author: Antonello D’Agostino | Senior Economist in the Economics and Policy Strategy department with Jacopo Cimadomo |...

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/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/countercyclical-capital-rules-small-open-economies Download PDF: Working Paper 10 This paper demonstrates that economies without flexible interest or exchange rates can benefit from countercyclical capital regulation. Author: Daragh Clancy | Senior Economist at the European Stability Mechanism with Rossana Merola | International Labour Organisation...

https://www.esm.europa.eu/publications/capital-adequacy-regulations-hungary-did-it-really-matter Download PDF: Working Paper 11 This paper calculates the effect of tighter regulatory capital requirements on the real economy during a credit upswing. Author: Dóra Siklós | Banking sector expert at the European Stability Mechanism Abstract: The main purpose of this paper is twofold. First, it aims...

https://www.esm.europa.eu/publications/financial-contagion-new-perspective-and-new-test Download PDF: Working Paper 12 This paper analyses the mechanism of financial shocks propagation and how extraordinary jumps in financial market uncertainty alter it substantially. Author: Matteo Cominetta | European Stability Mechanism Abstract: Contagion has mostly been interpreted and tested as a...

https://www.esm.europa.eu/publications/global-financial-safety-net-through-prism-g20-summits Download PDF: Working Paper 13 This paper looks at how the G20 delivered on its promises: financial firewalls expanded in size but the commitment to strengthen and reform International Financial Institutions was put on hold. Author: Gong Cheng | Economist and policy strategist at the European...

https://www.esm.europa.eu/publications/collateral-damage-micro-simulation-transaction-cost-shocks-value-central-bank-collateral-ecb Download PDF: Collateral Damage? Micro-Simulation of Transaction Cost Shocks on the Value of Central Bank Collateral - ECB Working Paper Series Author: Rudolf Alvise Lennkh and Florian Walch Abstract: Transaction cost shocks in financial markets are known to affect asset prices. This paper analyses...

https://www.esm.europa.eu/publications/der-esm-und-die-geldpolitik-wie-passt-das-zusammen Download PDF: Der ESM und die Geldpolitik - wie passt das zusammen? Author: Ralf Jansen | General Counsel of the European Stability Mechanism Rolf Strauch | Economics, Policy Strategy and Banking, Member of the Management Board Published online: October 2014 Source: Zeitschrift für das gesamte...

https://www.esm.europa.eu/publications/europes-response-euro-crisis Read publication: Europe's Response to the Euro Crisis Author: Rolf Strauch | Economics, Policy Strategy and Banking, Member of the Management Boarf Abstract: La Revue bancaire et financière analyse les aspects économiques des matières bancaires et financières. Elle est parfaitement complémentaire...

https://www.esm.europa.eu/publications/whats-what-europe-european-financial-stability-facility-efsf-and-european-stability Download PDF: What's what in Europe: The European Financial Stability Facility (EFSF) and the European Stability Mechanism (ESM) Author: Ralf Jansen | General Counsel of the European Stability Mechanism Published online: April 2011 Source: European Banking & Financial Law Journal EUREDIA | Volume...