This collection of essays examines the topic of macroeconomic stabilisation in an international context, focusing on monetary policy, capital controls and exchange rates. Chapter 1, written in collaboration with Giancarlo Corsetti and Joao Duarte, reconsiders the effects of common monetary policy shocks across countries in the euro area, using a data-rich factor model and identifying shocks with high-frequency surprises around policy announcements. We show that the degree of heterogeneity in the response to shocks, while being low in financial variables and output, is significant in consumption, consumer prices and macro variables related to the labour and housing markets. Mirroring country-specific institutional and market differences, we find that home ownership rates are significantly correlated with the strength of the housing channel in monetary policy transmission. We document a high dispersion in the response to shocks of house prices and rents and show that, similar to responses in the US, these variables tend to move in different directions. In Chapter 2, I build a two-country, two-good model to examine the welfare effects of capital controls, finding that under certain circumstances, a shut-down in asset trade can be a Pareto improvement. Further, I examine the robustness of the result to parameter changes, explore a wider set of policy instruments and confront computational issues in this class of international macroeconomic models. I document that within an empirically relevant parameter span for the trade elasticity, the gains from capital controls might be significantly larger than suggested by previous contributions. Moreover, I establish that a refined form of capital controls in the shape of taxes and tariffs cannot improve upon the outcome under financial autarky. Finally, results show that the conjunction of pruning methods and endogenous discount factors can remove explosive behaviour from this class of models and restore equilibrating properties. In Chapter 3, I use a panel of 20 emerging market currencies to assess whether a model that combines fundamental and non-fundamental exchange rate forecasting approaches can successfully predict risk premia (i.e. currency excess returns) over the short horizon. In doing so, I aim to overcome three main shortcomings of earlier research: i) Sensitivity to the chosen sample period; ii) seemingly arbitrary selection of explanatory variables that differs from currency to currency; and iii) difficulty in interpreting forecasts beyond the numerical signal. Based on a theoretical model of currency risk premia, I use real exchange rate strength combined with indicators for carry, momentum and economic sentiment to homogeneously forecast risk premia across all 20 currencies in the sample at a monthly frequency. In doing so, the model remains largely agnostic about structural choices, keeping arbitrarily imposed restrictions to a minimum. Results from portfolio construction suggest that returns are significant and robust both across currencies as well as over time, with Sharpe Ratios in out-of-sample tests above 0.7.

The main task of the thesis entitled Differentiation of European Integration Process is historical excursus into the development of the policy of differentiation and flexibility within the European integration member countries. The thesis points out the comparison of the speeches delivered by leading representatives that helped forming theoretical basis of this european policy. The thesis then also characterises the main models of differentiated collaboration and evaluates their present contribution and future utilisation. With help of theoretical foundings the thesis then analyses three particular examples of differentiation in existing European integration process.

The need to improve the economic governance of the EU occurred during the financial crisis when many member states experienced recession. The fact that each member state was influenced differently shows us the two main weaknesses of the EMU: economic heterogeneity of the member states and deep public debt. Existing fiscal rules were proved to be ineffective and unenforceable. The topic of this master thesis is the analysis of the impact of the economic governance reform on the position of the European Commission. The thesis deals only with one aspect of the reform- the budgetary surveillance framework. The thesis explains that this reform was necessary for improving of the EMU and it deals with the impact of this reform on the position of the European Commission. The analysis is based on the comparison of legal acts concerning the budgetary surveillance framework before and after the reform.

The Czech Republic has committed itself to adopt the euro with joining the European union in 2004. Until today there has not been any political interest of setting the specific date of euro adoption due to low public approval. Currently, there is an increase of positive public opinion about euro so it is the right time to start an objective discussion. The thesis is divided into three parts. The First part describes the history and evolution of the European monetary union, Maastricht convergence criteria and the theory of optimal currency area. The second part presents possible economic benefits and costs of joining the monetary union. The third and the main part examines the real effects of euro adoption on sample of selected countries with similar characteristics. The impact of euro on main economic indicators was analysed and there has been carried out a comparison between these countries. Also the role of euro in trade of selected countries has been highlighted. Last but not least, the possible impact of euro on country competitivness has been analysed in the context of optimum currency area theory. It is expected that joining the monetary union leads to a boost of bilateral trade which harmonizes the economic cycles of trade partners. The main purpose of this part is to prove the increase of competitiveness of exporters gained from monetary union measured by the raise of the bilateral trade interconnection. Finally these two criteria - gross domestic product alignment and bilateral trade interconnection have been used to describe the suitability of Czech Republic as a candidate country for the European monetary union.

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Il lavoro stima il costo del capitale delle banche italiane alla luce di due antitetici comportamenti di investimento: diversificazione internazionale di portafoglio e concentrazione proprietaria volta alla detenzione di pacchetti azionari rilevanti. L'integrazione dei mercati finanziari e l'adozione della moneta unica determinano la necessità di allargare all'area valutaria il correlato empirico al portafoglio di mercato indicato dal CAPM. La verifica condotta su un campione di banche italiane evidenzia la riduzione dei Beta e del costo del capitale proprio a causa del limitato contributo fornito al rischio sistematico del portafoglio riferito all'area valutaria da parte del mercato azionario nazionale e delle banche italiane. La detenzione del potere decisionale consente agli azionisti rilevanti di ottenere, in termini di private benefits, un sovra-rendimento che giustifica strategie volte alla concentrazione di ricchezza. Questo genera per le banche italiane un incremento del costo del capitale. / This work analyses the techniques to assess the cost of equity of Italian banks in the light of two antithetical investment policies: international portfolio diversification and ownership concentration directed to hold large blocks of shares. Financial market integration and European Monetary Union involve using a broader index, referred to the Euro area, as the proxy for the market portfolio pointed out by CAPM. The analysis carried out on a sample of Italian banks shows this change brings about a reduction of both the estimated Beta and the cost of equity. This is due to the limited contribution that domestic market index makes to the systematic risk of the Euro portfolio. The control of the decision-making process enables the holders of large blocks of shares to extract private benefits and to obtain extra returns compared with other investors. This can explain an investment policy directed to wealth concentration. That causes a higher equity cost of equity.

Never before in history has the amount of international trade been higher or more efficient than it is today. The fastest growing type of trade is the speculative currency trading, searching for instant profit based only on the anticipation of the variations in currency exchange rates. When currency speculation becomes an influential part of the capital flows it becomes harmful and creates instability of currency systems. Exchange rates starts to fluctuate due to the will and anticipation of speculators rather than the economic health of the country associated with the currency. This has led to recurring currency crises all over the world and an increased interest in regulatory mechanisms. One of the most discussed mechanisms proposed to handle this harmful evolution of the foreign exchange markets is the Currency Transaction Tax (CTT). The CTT stipulates a low tax (0.1 per cent) on all currency transaction to curb the incitement of short-term speculation based on a large amount of smaller transactions. The purpose of this thesis is to examine whether an implementation of a CTT is compatible with the EU treaties. This purpose consists of two research questions; whether the CTT is in conformity with the substantive law of the EU, more precisely the free movements of capital, and if the CTT is in conformity with the Economic and Monetary Union (EMU) and the exclusive power of the European System of Central Banks (ESCB) over monetary policy. Since this thesis aims to identify if the CTT is in conformity with existing legislation, the traditional doctrinal method is used for identifying and analysing potential difficulties with the CTT and to interpret these provisions in the light of ECJ case law and literature. The thesis concludes that the CTT is in conformity with the EU treaties. It does however require the full cooperation of the ESCB and ECB to achieve the objectives; to create a more stable currency market. The CTT is ready to implement.

In this masterwork author presents a concept of the European monetary union, main features and steps of creating this union; also defines benefits and costs of entering the euro zone. The legal regulation of economic convergence requirements and its practice are analyzed comprehensively. In this work author detects harmonization areas of legal acts between European Community and national legal acts, presents a necessity and ways of this harmonization and reviews the most important regulations in Lithuania, witch must be harmonized.

Esta tesis extiende el modelo estándar Neo Keynesiano con el propósito de contestar dos preguntas: ¿cómo debe ser diseñada la política monetaria en uniones monetarias heterogéneas? y ¿cuál es el efecto de presiones competitivas sobre la dinámica de la inflación? El primer capítulo analiza el diseño de política monetaria en uniones monetarias en las cuales los países miembros muestran diferentes grados de apertura externa. Esta heterogeneidad implica que el plan de la política óptimo muestra una inclinación muy fuerte por la estabilización del tipo de cambio, con el objetivo de disminuir los diferenciales de inflación. El segundo capítulo estudia el diseño de reglas de metas en una unión monetaria con choques idiosincráticos cost-push que tienen diferentes volatilidades. El tercer capítulo estima un curva de Phillips Neo Keynesiana derivada de un modelo con entrada endógena de firmas, en el cual el número de firmas activas está inversamente relacionado con el markup deseado. Se cuantifica el efecto de las fluctuaciones del markup deseado sobre los costes marginales reales. / This thesis extends the basic New Keynesian (NK) model to answer two questions. How should monetary policy be designed in heterogeneous currency areas? What is the effect of competitive pressures on the inflation dynamics? The first chapter analyzes the monetary policy design in currency areas in which countries display different degrees of external openness. Such heterogeneity implies that the optimal policy plan exhibits a stronger motive for the currency area exchange rate stabilization in order to dampen inflation differentials. The second chapter studies the design of targeting rules in currency areas with country-specific cost-push shocks that have different volatilities. The third chapter estimates a NK Phillips curve derived from a model with endogenous firm entry in which the number of active firms is inversely related to their desired markup. It quantifies the effect of the desired markup fluctuations on the pass-through of real marginal cost. .

Les Banques centrales occupent une position essentielle au coeur des économies contemporaines et font l'objet de débats animés sur ce que devraient être le rôle, les objectifs et le cadre institutionnel d'une Banque centrale. Face à une multitude d'analyses normatives concernées par ce qui doit être, on note une absence relative d'analyses positives. L'objectif de cette thèse est de contribuer à éclairer la réflexion sur les choix de politique monétaire mis en oeuvre par les Banques centrales. Le cadre d'application empirique retenu pour notre recherche est celui de l'Union économique et monétaire (UEM). La place importante de cet ensemble économique sur la scène internationale et son cadre institutionnel particulier suffisent à justifier l'intérêt d'une étude du comportement de la Banque Centrale Européenne (BCE). Les nombreux débats qui ont accompagné la mise en place de cette institution encore relativement jeune et ceux qui se poursuivent aujourd'hui renforcent cet intérêt. Dans la littérature économique, deux lignes de conduite ont principalement été retenues pour analyser les choix effectifs de la politique monétaire des banques centrales. La première approche, que nous avons qualifiée d' « économique », consiste en la formulation et l'estimation des fonctions de réaction de politique monétaire déduites d'un comportement d'optimisation ne prenant en compte que des variables économiques. Cette approche est fondée sur une vision globalisante de l'autorité monétaire... / Central banks occupy a key position at the heart of contemporary economies and are the subject of lively debates about what should be the role, the objectives and the institutional framework of a central bank. In the presence of a multitude of normative analyses concerned with what should be, there is a relative lack of positive tests. The objective of this thesis is to contribute to elucidate the reflections on monetary policy choices implemented by central banks. The empirical application framework used for this research is that of the European Monetary Union (EMU). The crucial position of this economic entity on the international scene and its particular institutional framework suffice to justify the interest of analysing the behaviour of the European Central Bank (ECB). The numerous debates that accompanied the establishment of this still relatively young institution and those who continue today reinforce this interest. In economic literature, two guidelines were mainly used to analyse the actual choices of the monetary policy of central banks. The first approach, which we call "economic", is the formulation and estimation of reaction functions of monetary policy derived from optimising behaviour taking into account economic variables only. This approach relies on a globalising vision of the monetary authority...