Back Matter

Back Matter

Author(s):
Petya Koeva Brooks, and Mahmood Pradhan
Published Date:
October 2015
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    Index

    Note: Page numbers followed by b indicate box, f figure, and t table.

    A

    • Accelerator model of private investment, 9, 10–11, 11f, 19t, 20f

    • Active labor market policies, 239, 244, 251, 252–254, 252f

    • Asset-backed securities, 90–91b, 93f, 222b, 223–224, 230

      • ECB purchase program, 88, 107, 110f, 136

    • Asset management companies, 192

    • Asset price shocks, economy-wide transmission of, 25–27

    • Asset Securitization Funds for SMEs, 228, 233

    • Austria, youth unemployment, 249, 250–251

    B

    • Banking Union, ix

      • benefits for non–euro area members of European Union, 193–194

      • common safety nets, 185–186, 189, 209–210

      • current architecture of stability, 175–177

      • design of, 180–186

      • for European Union, 180

      • implementation, 179–180, 186–187, 188–193, 194

      • legal considerations in establishment of, 190b

      • progress toward, 175

      • rationale, 173–175, 177–179, 194, 204

      • resolution mechanism, 183–185, 184b, 186, 189, 210

      • supervision mechanism, 180–183, 187–189

    • Bank Recovery and Resolution Directive, ix, 210

    • Banque de France, 230

    • Basel rules and principles, 176b, 181, 187, 226, 227b, 231, 233

    • Belgium

      • euro area fiscal consolidation effects, 145

      • fiscal consolidation, 143

    • Bond markets

      • ECB asset purchase program, 107

      • future prospects, 114–115

      • Greek debt restructuring, 95

      • impact of Outright Monetary Transactions program, 75, 76–77b

      • monetary transmission mechanism problems and, 81–82

      • ownership of government securities, 112, 113f, 114f

      • private investment performance and, 9–10, 13–14

      • Securities Markets Program subordination risk and, 97-101, 98f, 99f, 100f

      • securitized, 93, 94f

    • Brazil, 202b

    C

    • Capital flows

      • cross-border bank holdings, 78, 78f

      • in global financial crisis, 173

    • Capital markets

      • corporate financing in, 219

      • future challenges, ix, xii

      • growth of credit to private sector, 9, 10f

      • impact of Outright Monetary Transactions program, 75

      • insurance role, 203

      • integration, 204

      • recommendations for, xii

      • See also Cost of capital; Securitization markets

    • Collective bargaining, 249-250, 250f

    • Corporate bonds

      • spread over government bond yields, investment and, 14

      • yields, 121f

    • Corporate debt

      • deleveraging patterns and trends, 40-41, 42f

      • economic growth and, 42, 43-44, 44f

      • financing sources, 219, 220f

      • insolvency framework reform, 45

      • insolvency patterns and trends, 30, 30f, 31f

      • intermediation, 81

      • international comparison, 27-28, 28f

      • patterns and trends, 29-31, 30f, 82f

      • policies to support deleveraging, 45

      • vulnerabilities of indebted firms, 30–31

    • Cost of capital

      • lending rates, 6, 8f, 14, 77f, 79f, 80f, 123f, 174f, 219, 220f

      • modeling technique, 16–17

      • pass-through of policy rates to lending rates, 83–88, 85f, 86f

      • postcrisis investment trends and, 11–13, 16

      • postcrisis trends, 6, 12, 12f, 13f, 17, 18f

    • Covered bond purchase program, ECB, 107

    • Credit access

      • breakdown of monetary transmission mechanism in stressed countries, 81–83

      • lending rates, 6, 8f, 14, 77f

      • loan application outcomes, 83f

      • postcrisis investment trends and, 6–9, 8f

      • for small and medium enterprises, 81, 88, 89, 219, 221

    • Credit default swaps, 75, 80

      • Securities Markets Program subordination risk and, 97–98, 98f, 101–103, 102f

      • sovereign—domestic bank spreads, 199, 199f

    • Current account balances

      • adjustment goals, 67

      • components, 51f, 52f

      • determinants of, 50, 51f, 70–71

      • determinants of postcrisis export performance, 60–65, 63f

      • effects of global financial crisis, x

      • export patterns and trends, 57–59, 58f, 59f, 62f

      • future challenges, 49–50

      • growth and, 49, 50f

      • patterns and trends, 49

      • postcrisis patterns and trends, 50–59, 51–53f

      • strategies for rebalancing, 67–70, 71–72

      • structural and cyclical determinants of adjustments, 65–67, 67f, 67t

      • variation within euro area, 49

    • Cyprus, 143, 251

    D

    • Debt. See Private debt; Public debt

    • Debt Redemption Fund, 215

    • Deflation, x–xi

    • Demand

      • credit, 80, 83, 88, 92b, 120, 121f, 122

      • current account balance and, x, 49, 50, 58, 59, 61, 63f, 64, 65f, 70, 71

      • feedback loops from balance sheet effects, 26

      • for labor, 245, 252

      • output losses from contraction in, 145

      • postcrisis investment and, 3

      • for small and medium-size enterprise securitization, 230, 231, 232

      • smoothing to reduce risk from shocks, 203

      • structural reforms and, 160

      • support for, in postcrisis recovery, ix

    • Deposit insurance, 176–177b, 185–186, 188

    • Dexia, 184b

    • Dual labor markets, 248–249, 248f, 249f

    E

    • ECB. See European Central Bank

    • Economic and Monetary Union, v, ix, 149

      • fiscal governance shortcomings, xi–xii

      • obstacles to deeper integration, 196

      • proposals for deeper integration, 196b

      • rationale, xi

      • rationale for deeper integration, 195–196

      • risk sharing in, 204f

      • structural variation among members of, 49

      • vulnerability to shocks, 195, 197

      • weaknesses exposed by global financial crisis, 195, 197–199

      • See also Fiscal union

    • Educational attainment, 250

    • Employment protection legislation, 248–249

    • Estonia, 143

    • Euro area

      • balance sheet stress in, 25–36

      • challenges to current account rebalancing, 49–50

      • current account balance, 50

      • cyclical and structural factors in current account adjustment, 65–67

      • determinants of youth unemployment, 240–251

      • drivers of growth in, 50f

      • drivers of investment in, 10–16

      • financial market integration and fragmentation, 173, 174f

      • global financial crisis outcomes, x

      • historical episodes of deleveraging, 39–44

      • IMF and, v, ix

      • policy responses to recent economic challenges, ix

      • policy support for private sector deleveraging, 44–46

      • postcrisis current account, 50–59

      • postcrisis export performance, 60–65

      • postcrisis investment trends, 3–10, 161f

      • public debt trends, 149–151

      • recent economic challenges in, ix

      • recent reforms of fiscal framework, 151–152

      • recommendations for current account adjustment, 67–72

      • reforms to promote youth unemployment, 252–254

      • salient economic issues in, x–xii

      • youth unemployment patterns and trends, 239–240

      • See also Banking Union; Fiscal union; specific country; specific governance institution

    • European Banking Authority, 177b, 193

    • European Central Bank (ECB), v

      • base money, 110f

      • Comprehensive Assessment, 122

      • in establishment of banking union, 190b, 192–193

      • Eurosystem collateral framework and, 90–91b

      • future challenges for, 75

      • lending rates, 6, 8f

      • liquidity conditions, 110f

      • liquidity support for weak banks from, 88–89, 186

      • pass-through of policy rates to lending rates, 83-88, 85f, 86f

      • recommendations for monetary policy reforms, x

      • responses to global financial crisis, x–xi, 75, 173

      • strategies for improving monetary transmission mechanism, 88–92

      • supervision, ix, 180–181, 181b, 182–183, 187–188

      • targeted asset purchases, 89–91

      • transparency, 107, 133

      • See also Outright Monetary Transactions; Quantitative easing, ECB

    • European Commission, 140, 151, 159, 162, 163, 229–230

    • European Council, 162, 175, 201

    • European Financial Stability Facility, 173, 195, 204, 212b

    • European Financial Stabilization Mechanism, 212b

    • European Insurance and Occupational Pension s Authority, 234–235

    • European Investment Bank, 88, 91–92, 162, 229–230, 232

    • European Investment Fund, 229, 232

    • European Stability Mechanism, 49, 167, 173, 195, 204, 208, 212b

      • direct recapitalization, 189–192

    • European Systemic Risk Board, 177b

    • European System of Financial Supervisors, 177b

    • European Union, 175

      • banking union, 180, 181b

      • non–euro area members of, benefits of banking union for, 193–194

      • risk sharing in, 204f

      • See also Fiscal governance, European Union

    • Eurosystem

      • balance sheet, 110f

      • collateral framework, 90–91b, 130, 132, 232

      • crisis financing, 79f, 212b

      • flexibility in asset purchases, 134

      • government bond purchases, 127

      • Greek debt restructuring, 95

      • securities lending, 137

      • senior creditor status, sovereign bond valuation and, 98–99, 104

      • share of securities market, 99–100, 103

      • See also Securities Markets Program

    • Excessive deficit procedure, 141, 141t, 151, 162, 163, 201

    • Exchange rates

      • consumer price index-based, 50, 53f

      • export performance and, 61, 62, 63, 64f

      • gross domestic product-based, 53f, 55

      • postcrisis patterns and trends, 50, 53f

      • quantitative easing and, 116–117, 116f

      • recent euro depreciation, 116–117

      • trade elasticities and, 117

      • unit labor cost-based, 50, 51, 53f

    • Exports

      • demand, 61, 62f

      • determinants of postcrisis performance, 60–65, 63f, 64f

      • exchange rates and, 61, 62, 63, 64f

      • goods and services, 68, 68f

      • labor cost adjustments and, 57

      • nonprice competitiveness, 58–59, 59f, 70b

      • postcrisis patterns and trends, 57–59, 58f, 59f, 62f

      • price competitiveness, 57–58, 59f

      • services sector, 68, 68f, 69f

      • strategies for rebalancing and enhancing competitiveness, 68

      • trade correlation index, 64f

    • External indebtedness, 36, 38f

    F

    • Financial sector

      • balance sheet stress, 80

      • bank bond issuance rates, 123f

      • breakdown of monetary transmission mechanism in stressed countries, 81–83

      • cross-border bank flows, 78, 78f

      • deposit rates, 123f

      • encumbered assets, 90–91b

      • Eurosystem collateral framework, 90–91b, 232

      • impact of Outright Monetary Transactions program, 75

      • interest rate divergence, 77f, 78–80, 79f, 174f

      • intermediation system, 81

      • liquidity support from European Central Bank, 88–89

      • monetary policy transmission channels, 93f, 221

      • nonperforming loans, 35, 35f, 80, 122, 124f, 133

      • number of credit institutions, 182, 182f

      • pass-through of policy rates to, 83–88, 85f, 86f

      • policies to support deleveraging, 45

      • quantitative easing effects in credit channel, 120–122, 121f, 122f

      • resolution regimes, ix, 176b, 177–178, 183–185, 184b, 186, 205, 210

      • return on equity, 35f

      • safety nets, 176–177b, 177–178

      • strategies for improving monetary transmission mechanism, 88–92, 221

      • transmission of global financial crisis shocks, 199, 200f

      • See also Banking Union

    • Fiscal Compact, 139, 140f, l41t, 151, 156, 157, 163, 164, 195, 196b, 206

    • Fiscal consolidation

      • mitigating output losses from, 147-148

      • output effects from Securities Markets Program requirements, 143–147

      • recommendations for, xi

      • under Stability and Growth Pact, 139

    • Fiscal governance, European Union

      • current challenges, xi, 168

      • current framework, 175–177, 176–177f

      • effects of no-bailout clause on, 199

      • impact of global financial crisis and, 149, 153–154, 154f, 195, 197–199

      • lessons from global financial crisis, 150–151, 168

      • medium-term plans, 206

      • recent reforms, 140f, 141t

      • recommendations for improving, xi

      • response to global financial crisis, 139, 140f

      • shortcomings of euro area, 149, 168

      • treaties and legislation, 151

      • vulnerability to cross-border transmission of shocks, xi–xii

      • See also Fiscal union; Securities Markets Program

    • Fiscal union

      • benefits of, 211

      • center-based approach, 206–207

      • as common backstop for banking union, 209–210

      • costs of, 211

      • essential elements of, 206

      • fiscal policy oversight, 206–207

      • implementation, 214–215

      • legal considerations, 212b

      • movement towards, 195–196, 196b

      • obstacles to, 196, 211

      • rationale, 195, 197–199

      • risk reduction in, 200–203

      • risk sharing in, 203–205, 213–214

      • to stem contagion, 205

      • transfers and social protection spending, 208–209

    • Forecasting, 206

    • Foreign exchange reserves, 112, 114f

    • Fortis, 184b

    • France

      • ownership of government bonds, 112

      • private investment in, 14

      • trade, 57, 58, 61

      • unit labor costs, 51

      • wages, 246

      • youth unemployment, 244

    G

    • Germany

      • fiscal consolidation, 143

      • government debt, 127

      • hiring costs, 245

      • private investment in, 12, 13, 14

      • private ownership of government bonds, 112

      • real effective exchange rate, 50

      • risk sharing in, 204f

      • trade, 57, 58, 61, 117

      • unemployment benefits, 247

      • unit labor costs, 51, 57

      • youth unemployment, 249, 250–251

    • Global financial crisis, ix, x

      • banking union rationale, 178

      • effects on private investment, 3–10, 4–9f

      • effects on securitization market, 221–223, 222–223b

      • effects on youth unemployment, 239–240, 240f

      • euro’s share in global reserves since, 112

      • lessons from, 150–151, 168, 173

      • outcomes, x

      • policy responses to, 173

      • public debt and, 149–151, 150t, 153–154, 154f

      • shortcomings of euro area financial governance and, 149, 153–154, 168, 195, 197–199

    • Government bonds

      • collateral availability issues in quantitative easing, 130–133

      • corporate bond spreads over, investment and, 14 future prospects, 114–115

      • investor base, 112, 113f, 114f, 131t

      • potential scarcity of, quantitative easing and, 122–130, 131f

    • Greece

      • crisis financing, 212–213b

      • current account balances, 50, 66

      • debt restructuring, 95

      • euro area fiscal consolidation effects, 145–146

      • fiscal consolidation, 143, 153

      • hiring costs, 245

      • housing investment, 3

      • private investment in, 12, 14

      • subordination risk in exemption from private

      • sector debt swap, 95, 98

      • trade, 57, 58, 61, 70

      • unit labor costs, 57

      • wages, 246

      • youth unemployment, 244, 251, 252

    • Greek Loan Facility, 212–213b

    • Growth

      • country-specific growth shocks, 197, 198f

      • debt levels and, x, 42–44

      • divergence within euro area, 198f

      • domestic and external contributions to, 49, 50f

      • future challenges and opportunities, ix

      • importance of small and medium enterprises, 79f

      • investment and, 3, 5f

      • postcrisis trends, 3, 5f

      • private sector debt levels and, 25, 26–27, 36

      • public debt increase during global financial crisis and lack of, 150

      • recovery from global financial crisis and, x

      • Securities Markets Program objectives for sustainability and, 159–162, 160b

      • significance of small and medium enterprises, 221

      • youth unemployment and, 241–243, 244, 244f, 252–253

    H

    • Household debt

      • deleveraging patterns and trends, 39–40, 40f

      • economic growth and, 42, 43–44, 44f

      • international comparison, 27–28, 28f

      • patterns and trends, 31–32, 32f, 35f, 39

      • policies to support deleveraging, 45–46

      • vulnerability to stress and, 32–35

    • Household savings, 33–34b

    • Household wealth, 115, 116f

    • Housing bubble, 31

    • Housing investment, 3

    I

    • Income tax, unemployment patterns and, 247

    • Inflation

      • course of recovery from global financial crisis, x–xi

      • ECB asset purchase program and, 107

      • quantitative easing and, xi, 117–120, 118–120f, 133

    • Insolvencies, 30, 30f, 31f, 45

    • Interest rates

      • breakdown of monetary transmission mechanism, 81

      • divergences between core and stressed country banks, 77f, 78–80, 79f

      • impact of Outright Monetary Transactions program, 75

      • pass-through of policy rates to lending rates, 83–88, 85f, 86f

      • quantitative easing, 109–112

      • response to global financial crisis, xi

      • for small and medium enterprise loans, 83

    • International Monetary Fund

      • euro area Article IV consultations, v, ix

    • Ireland

      • corporate debt, 40–41

      • crisis financing, 212–2136

      • current account balances, 50, 66

      • debt patterns and trends, 28–29

      • fiscal consolidation, 143

      • household debt, 31–32

      • housing investment, 3

      • private investment in, 12, 14

      • trade, 57, 58, 70

      • unit labor costs, 57

      • youth unemployment, 244, 252–254

    • Italy

      • access to credit, 83

      • crisis financing, 212–2136

      • employment patterns, 243

      • fiscal consolidation, 143

      • government debt securities, 132

      • labor productivity, 57

      • lending rates, 85, 87

      • nonperforming loans, 80

      • private investment in, 14

      • private ownership of government bonds, 112

      • trade, 57, 58, 61, 117

      • unit labor costs, 51

      • youth unemployment, 244, 249, 252

    J

    • Japan, 234

      • loans to private sector, 124f

      • postcrisis credit market, 122

      • public debt securities, 112

      • quantitative easing program, xi, 117

    L

    • Labor mobility in euro area, 198

    • Labor productivity

      • current account balance and, 66

      • postcrisis patterns and trends, 55–57, 57f

    • Latvia, youth unemployment, 244

    • Long-Term Refinancing Operation, 75, 80, 88–89, 90b, 91f

    M

    • Macroeconomic Imbalance Procedure, 168

    • Manufacturing sector, 242, 242f

    • Minimum wage rates, 245–246, 252

    • Monetary policy

      • effects of global financial crisis, x

      • prospects for recovery, x

      • strategies for improving policy transmission, 88–92

      • transmission mechanism problems, 81–83

    N

    • Net foreign asset positions, 70, 71f

    • Netherlands

      • housing prices, 35

      • youth unemployment, 249, 250–251

    • No-bailout clause, 167, 199, 201, 202

    • Nonfinancial corporations

      • balance sheet stress and unemployment, 38f

      • debt-to-equity ratio, 9f

      • deposit flows, 123f

      • lending and borrowing patterns, 28f, 30f, 37f, 82f, 121t

      • liabilities, 220f

      • outcomes of loan applications, 220f

      • sources of financing for, 81, 219, 220f

    • Nonperforming loans, 35, 35f, 80, 122, 124f; 133

    O

    • Okun’s Law, 241, 256

    • Outright Monetary Transactions, 49, 173, 195

      • effectiveness, 75

      • euro redenomination risk and, 75, 76–77b

      • purpose, 75

    P

    • Portugal

      • access to credit, 83

      • corporate profitability, 30–31

      • crisis financing, 212–213b

      • current account balances, 50

      • debt patterns and trends, 28–29

      • employment patterns, 243

      • fiscal consolidation, 143, 153

      • household debt, 32

      • private investment in, 12, 14

      • trade, 57, 58, 61, 70, 117

      • unit labor costs, 57

      • wages, 246

      • youth unemployment, 244, 249, 251

    • Price adjustments in euro area

      • current account balances and, x

      • patterns and trends, 51–53

    • Price rigidities in euro area, 197–198

    • Private debt

      • in advanced economies, 124f

      • assessing vulnerability of, 27

      • future challenges, ix, 25

      • global financial crisis outcomes, x, 25

      • growth and, 42, 43–44

      • international comparison, 27–28, 28f

      • policies to support deleveraging, 44–46

      • postcrisis trends, 9, 9f

      • private investment and, 14, 16

      • public debt and, 35–36, 37f

      • transmission of economy-wide stresses from, 25–27, 36, 38f

      • variation within euro area, 28–29, 29f

      • See also Corporate debt; Household debt

    • Private investment

      • accelerator model of output dynamics, 9, 10–11, 11f, 19t, 20f

      • bond market model of output dynamics, 9–10, 13–14, 15f, 22t, 23f

      • corporate leverage and, 14, 16

      • cost of capital and, 11–13, 16

      • credit access and, 6–9, 8f

      • differences across euro area, 3

      • drivers of nonresidential, 10–16

      • effects of global financial crisis, x, 3–10, 4–9f, 15, 15f

      • effects of historical financial crises, 3, 4f, 5–6,

      • future challenges and opportunities, x, 3

      • neoclassical model of output dynamics, 9, 11–13, 21t

      • uncertainty effects, 14, 16

    • Private sector involvement for Greece, 95

    • PROMISE program, 228, 233

    • Public debt

      • bank holdings, 129t, 132f

      • compliance with Securities Markets Program rules, 152f, 153

      • decomposition, 150, 150t

      • ECB quantitative easing and, 111f, 125t, 129t, 136

      • economic growth and, 42, 43–44, 44f future challenges, ix

      • global financial crisis outcomes, x, 149–151, 153–154, 154f

      • household deleveraging and, 40.41f

      • international comparison, 27, 28f

      • as operational target of Securities Markets

      • Program rules, 165 patterns and trends, 37f, 129t

      • private sector debt and, 35–36, 37f, 129t

      • Securities Markets Program rules, 151

      • variation within euro area, 28–29, 29f

      • See also Government bonds

    • Public investment

      • cross-border projects, 161–162

      • differences across euro area, 3

      • postcrisis trends, 3 trends, 161, 161f

    • Public sector asset purchase program, 107

    Q

    • Quantitative easing, ECB, ix

      • asset prices and, 115, 115 f

      • collateral availability and, 130–133

      • covered bond purchases, 107

      • credit markets and, 120–122, 121f, 122f

      • effectiveness of, x–xi, 107, 108f

      • exchange rate and, 116–117

      • expanded asset purchase program, 136, 136f, 137

      • Governing Council’s commitment to, 107

      • harmonization of securities lending, 134

      • impact on financial conditions, 108–109, 109f, 110–111f

      • inflation expectations and, xi, 108, 109f, 117–120, 118–120f, 133

      • inflation goals, 107, 133

      • international comparison, xi

      • potential scarcity of assets and, 122–130

      • price cap on asset purchases, 127

      • private asset purchases, 107, 110f, 126f

      • projected effects, 109

      • prospects for portfolio rebalancing, 112–115, 113f

      • recommendations for, 133–134, 135f

      • scope of, 107

      • sovereign asset purchases, 107, 110f, 125t

      • subordination concerns, x

      • term spreads and, 109–112, 111f, 113f

      • transmission channels, 108–109

      • See also Asset-backed securities purchase program, ECB

    R

    • Regional integration, ix

    • Regulation, securitization market, 225–226, 227–228b, 231

    • Repo funds rate, 131f

    • Resolution of banks, ix, 176b, 177–178, 183–185, 184b, 186, 189, 205, 210

    S

    • Securities Markets Program, x

      • bond market yields and subordination risk from, 98–101

      • complexity of rules and procedures, 154–157, 164–166, 168

      • compliance, 152–153, 152f, 163f

      • credit default swap pricing and subordination risk from, 101–103, 102f

      • current weaknesses and shortcomings of, 154–163

      • effectiveness of interventions, 96–97, 96f, 152–154

      • effects of Greek debt restructuring, 95

      • empirical evidence of subordination risk, 97–98, 98f

      • enforcement mechanisms, 151, 162–163, 166–168

      • Eurosystem credibility and, 193

      • exclusion of capital outlays from fiscal balances, 161

      • fiscal effort as operational target, 165

      • flexibility in enforcement, 151

      • medium-term objective, 152, 156-157, 159–160, 161, 164

      • mitigating output losses from fiscal consolidation under, 147–148

      • nominal balance rules, 157

      • origins, 149

      • output effects from fiscal consolidation under, 143–147

      • oversight, 162, 163

      • preventive and corrective arms, 164

      • principle reforms, 151–152

      • purchases, 96, 96f, 97

      • purpose of, 149

      • reform options, 163–168

      • rules on fiscal aggregates, 155–156, 155f

      • significance of subordination effects, 193

      • structural balance computation, 157–159, 165, 166b

      • subordination of private debt holders under, 95

      • sustainability and growth objectives, 159–162, 160b

    • Securitization markets

      • benefits of expanded funding for small and medium enterprises, 219, 221

      • credit rating, 223, 224f

      • defining high-quality securitization, 234–235

      • effects of global financial crisis, 91b, 219, 221–223, 222–223b

      • impediments to small and medium enterprise access to, 223–226, 233

      • overview, 222b

      • performance, 226–228

      • regulation, 225–226, 227–228b, 231

      • strategies for enhancing small and medium enterprise access, 230–233

      • support programs for small and medium enterprises, 228–230, 233–234, 235–237t

      • See also Securities Markets Program

    • Service sector

      • exports, 68, 68f, 69f

      • youth employment in, 242, 242f

    • Single Supervisory Mechanism, ix, 173–175.

    • See also Banking Union, 180–183, 181b, 188–189

    • Six-pack legislation, 139, 140f, 141t, 151, 173, 195, 196b

    • Small and medium enterprises, ix

      • access to credit, 81, 88, 219

      • economic benefits of expanded securitization market for, 219, 221–223

      • effects of broken monetary transmission mechanism, 83

      • effects of global financial crisis, x

      • employment in, 221

      • impediment to securitization, 223–226, 233

    • Small and medium enterprises (Continued)

      • lending rates for, 79f, 83, 219, 220f

      • loan application outcomes, 83f, 219

      • public programs to support securitization funds for, 228–230, 233–234, 235–237t

      • share of economy, 79f, 83, 220f, 221

      • share of securitized bond market, 93, 94f

      • strategies for improving credit access for, 89

      • strategies for improving securitization for, 230–233

      • youth employment in, 241, 243, 243b

    • Social protection spending, 208–209

      • unemployment benefits, 247–248

    • Spain

      • access to credit, 83

      • corporate debt, 30, 40–41

      • crisis financing, 212–2136

      • current account balances, 50, 66

      • debt patterns and trends, 28–29

      • employment patterns, 243

      • fiscal consolidation, 143

      • government debt securities, 132

      • hiring costs, 245

      • household savings and debt, 31–35, 34b

      • housing investment, 3

      • labor productivity, 57

      • lending rates, 85 nonperforming loans, 80

      • private investment in, 11, 11f, 12, 14, 15, 15f

      • private ownership of government bonds, 112

      • trade, 57, 58, 61, 70, 117

      • wages, 246

      • youth unemployment, 244, 249, 251, 252–254

      • youth unemployment and, 253b

    • Stability and Growth Pact, ix, 200

      • current compliance with requirements of, 143

      • in European Union fiscal governance, 139, 140f

      • fiscal consolidation under, xi, 139

      • fiscal regimes, 140–141

      • order of prevalence between rules of, 140

      • output effects of fiscal consolidation under, 139–140

      • projected structural balance improvements, 141

      • purpose, 139

    • Stock market, quantitative easing and, 115, 115f

    • Stressed economies

      • bank holdings of government debt, 113f, 132

      • bank issuance, 79f

      • borrowing patterns, 82f

      • credit default swaps, 81f, 200f

      • current account balances, 49

      • deposit flows, 123f

      • financial sector risks and challenges, 80

      • foreign asset positions, 71f

      • interest rate divergence from core, x, 12, 75, 78, 109

      • investment patterns, 3

      • lending rates, 8f, 77f, 79f, 84, 85, 120, 137

      • monetary transmission mechanism breakdown in, 81–83

      • unit labor costs, 53f

    • Subnational fiscal governance, 201, 201f, 202b

    • Supervision, ix, 176b, 177, 177b, 187–189

    • Surveillance, v, 162

    • Systemic risk, 185b, 189–191, 210

    T

    • TARGET2, 173, 178f, 185b, 204, 211

    • Tax wedge, youth unemployment and, 245–247, 246f

    • Trade openness and elasticity, 117, 117f

    • Transparency and accountability, 206 ECB, 107, 133

    • Treaty on European Union, 151

    • Treaty on Stability, Coordination, and Governance, 151, 173

    • Treaty on the Functioning of the European Union, 151, 167

    • True Sale International GmbH, 229

    • Two-Pack legislation, 139, 140f, 151, 195, 196b, 207

    U

    • Unemployment, youth

      • access to vocational training and, 250–251

      • active labor market policies and, 251, 252–254, 252f

      • business cycle effects, 241–243, 244, 244f, 252–253

      • collective bargaining incidence and, 244–245, 249–250, 250f

      • determinants of, xii, 239, 240–241

      • future challenges, ix, xii

      • growth and, 252, 253b

      • hiring costs and, 245–247, 252

      • hiring costs as factor in, 244

      • labor market duality and, 248–249, 248f, 249f

      • labor market features and, 244–245, 245f, 254f

      • opportunity costs of working and, 244, 247–248

      • postcrisis patterns and trends, 239–240, 240f

      • replacement rate, 247, 247f

      • sectoral differences, 242, 242f

      • in small and medium-sized enterprises, 241, 243, 243b

      • strategies for reducing, xii, 252–254

      • temporary work contracts, 250–251, 251f

      • unemployment benefits and, 247–248

      • variation within euro area, 239–240, 240f, 241, 252

    • Unemployment insurance, 208–209, 247–248

    • Unions, 249–250, 250f

    • United Kingdom

      • loans to private sector, 124f

      • private debt in, 27–28, 28f

      • public debt securities, 112

      • quantitative easing program, xi, 117

    • United States

      • corporate financing, 219

      • household deleveraging, 39

      • loans to private sector, 124f

      • loan support for small and medium enterprises, 233

      • postcrisis credit market, 122

      • postcrisis investment trends, 3, 6f

      • private debt in, 27–28, 28f

      • public debt securities, 112

      • quantitative easing program, xi, 117

      • resolution of subnational economic crises, 202b

      • risk sharing in, 204f

      • securitization market, 223

    • Unit labor costs

      • contributions to changes in, 56f

      • postcrisis patterns and trends, 51, 53f, 54–55b, 55–57, 57f, 59

      • real effective exchange rate based on, 50

    V

    • Venture capital, 221

    • Vocational training, 250

    W

    • Wages

      • collective bargaining impact, 249–250

      • postcrisis patterns and trends, 55, 55f

      • rigidities in euro area, 197–198

      • youth unemployment and, 245–246, 246f

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