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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