Doris Ritzberger-Grünwald

The economic potential of a larger Europe

The Economic Potential of a Larger Europe gives insights into past, present and future issues related to the ongoing EU enlargement process. Providing a unique forum for debate and a multiplicity of views and experiences from both high-profile academics and those who engage with enlargement on an implementation level, this book covers a wide range of topics that are key to a successful transition and integration process and thus to the provision of a prosperous growth environment within a larger Europe. Special attention is paid to monetary integration, notably entry into ERM II, on which representatives of the national central banks involved present their views.

European Economic Integration and South-East Europe

With both transition dynamics and the EU integration process having shifted to the south-east of Europe, a region fairly marginalized in the literature, this book fills a gap by taking stock of where South-East Europe’s economies and institutions stood in 2004. The authors evaluate the potential for investment and growth within the South-East European region, including the role of trade and FDI, and discuss the challenges associated with unemployment, poverty and ‘brain drain’. The book also provides insights into the particular monetary and exchange rate policies applied, including cases of ‘euroization’, and finally makes an assessment, against this background, of the European perspective of the countries of South-East Europe.

Business Cycle Convergence or Decoupling? Economic Adjustment in CESEE During the Crisis

We analyze business cycle convergence in the EU by focusing on the decoupling vs. convergence hypothesis for central, eastern and south eastern Europe (CESEE). In a nutshell, we fnd that business cycles in CESEE have decoupled considerably from the euro area (EA) during the financial crisis in terms of both cyclical dispersion (i.e. the deviation of output gaps) and cyclical correlation. The results are mainly driven by smaller countries, which can be explained by the fact that small economies seem to have larger cyclical swings as they are more dependent on external demand, which causes a decoupling in terms of higher output gap deviations from the EA cycle in times of economic crises. At the same time, this does not necessarily affect business cycle synchronization as measured by cyclical correlations, where the strength of the linear relationship of two cycles is measured. However, despite the recent declines in the co-movement, we generally observe high correlation levels of CESEE countries with the EA after their EU accession in 2004. Finally, we find a significant decoupling of trend growth rates between EA and CESEE until the onset of the financial crises. Since the beginning of the crisis, trend growth rates have declined both in CESEE and the EA with the trend growth differential decreasing significantly from about three to below two percentage points in 2011.

Currency and Competitiveness in Europe

Contents:PrefaceKlaus Liebscher, Josef Christl, Peter Mooslechner and Doris Ritzberger-GrunwaldPART I: HOW CURRENCY AND COMPETITIVENESS CONTRIBUTE TO GROWTH AND STABILITY1. Competitiveness Still has CurrencyKlaus Liebscher2. Financial Market Turbulence and Global Imbalances John Lipsky3. Are Global Imbalances a Problem? John Williamson4. Financial Globalization and Exchange Rate Arrangements Graciela Laura Kaminsky5. Exchange Rates from a Multilateral and South-East Asian PerspectiveHans GenbergPART II: UNDERSTANDING EXCHANGE RATES 6. Fundamentally Lost? On the Role of Fundamentals in Exchange Rate Economics in History and TheoryPeter Mooslechner7. Macroeconomic Fundamentals and the Exchange Rate Ronald MacDonald8. Understanding Exchange Rates: A Micro-based Perspective on the Importance of FundamentalsMartin D.D. Evans9. Real Exchange Rate Dynamics in Transition Economies: The Role of Investment in QualityJan Brůha and Jiři Podpiera10. The Impact of Exchange Rate Interventions and Communication Over the Medium-term Marcel Fratzscher11. Using the Microstructure Approach to Foreign Exchange Markets at a Central Bank ron Gereben12. How do Central Banks and FX Traders Interact?Antonio ScaliaPART III: UNDERSTANDING ECONOMIC COMPETITIVENESS13. Competitiveness in a Monetary UnionJosef Christl14. Real and Nominal Convergence: Policy Challenges in a Monetary UnionLorenzo Bini Smaghi15. Product Quality and International Competitiveness in the New Member States of the EUDeniz Igan16. Structural Aspects of CompetitivenessJulia Woerz17. Assessing the Sustainability of External Positions in New EU Member StatesEnrique Alberola and Jose Maria SerenaPART IV: POLICY CHALLENGES ON THE ROAD TO AND WITHIN MONETARY UNION 18. Preparing for the Euro - Perspectives from the Monetary Policy Strategy in CyprusAthanasios Orphanides19. Economic Challenges on the Path to the Euro - The Maltese ExperienceMichael Bonello20. Slovakias Road to the Euro - Lessons Learned and Challenges AheadIvan Aeramko21. Euro Area Enlargement: Lessons and ChallengesServaas Deroose, Paul Kutos and Massimo SuardiIndex

Boosting European competitiveness

In the global financial crisis, competitiveness gaps between Euro area countries caused additional strain. This book discusses the various dimensions of competitiveness, with a special focus on Central, Eastern and Southeastern Europe. With products becoming ever more technically sophisticated and global interconnectedness on a relentless rise, quality, customer orientation and participation in production networks are as important as relative costs and prices. For Europe to proceed with convergence and to resist global competitive pressures, policies to boost productivity and innovation are therefore vital.

Financial Cycles and the Real Economy

What is the link between the financial cycle – financial booms, followed by busts – and the real economy? What is the direction of this link and how salient is this connection? This unique book examines these fundamental questions and offers a paramount contribution to the debate surrounding the recent financial and economic crisis.

Business cycle convergence or decoupling? Economic adjustment of CESEE countries during the crisis: Achieving Economic Sustainability in CESEE Countries

This topical book addresses the need for emerging economies in Central, Eastern and South-Eastern Europe to find a new, sustainable growth model that fosters continued convergence with the EU without leading to the build-up of new vulnerabilities.