The article addresses the choice of the exchange rate regime in the run up to the euro adoption. Based on a sample of new EU member states with managed floating exchange rate regimes, the article shows that higher level of monetary accommodation leads to a higher pass-through effect and hence lowers the ability to control inflation in the run-up regime. Exchange rate stabilization in the run up to the euro can therefore be a key contributing factor to lowering the rate of inflation and to fulfilling the Maastricht inflation criterion. This thesis is also confirmed out of the sample.
COBISS.SI-ID: 16241894
The authors develop a simple test for the continuity of a distribution function or of the type of distribution. The main advantage of this test is that no assumptions regarding the underlying distribution function are necessary. Results of Monte Carlo simulations indicate the robustness of the test. Also, they show that the test appropriately rejects/does not reject hypotheses regarding the type of distribution that a set of data follows. The test is important in the earnings-management literature, where deflated-earnings distributions typically are not normal due to tax incentives.
COBISS.SI-ID: 16123878
This article analyses distribution functions of a scalar product of random vectors, which can be commonly found in various problems in finance and insurance. The article shows how it is possible to estimate these distribution functions accurately with the help of a double conditional sum. Double conditional sum is shown to be the lower bound, while the co-monotone sum is the upper bound for these distribution functions. Case studies show the double conditional sum method to be very accurate and significantly faster than the Monte Carlo simulations.
COBISS.SI-ID: 16047590
The paper studies the optimal monetary policy with high growth of productivity that drives the convergence process. This is the case of Slovenia in the EU. An original form of modelling permanent and non-stationary shocks in multi-sector dynamic stochastic model of general equilibrium for small open economies is derived. This is important for monetary policy in Slovenia in the ERM II system, but can be applied to other similar EU members. The model will also be used to upgrade the DSGE model of the Slovenian economy, which will be used for the analysis of the economic policy in the EMU.
COBISS.SI-ID: 17695718
The paper studies the growth effects of international financial integration on a group of European countries and links them to the process of euro introduction. A positive influence is not automatic, but must be accompanied by development of domestic financial system. A sustainable process of international financial integration can be an important catalizator of domestic financial sector development. For a group of new EU members, including Slovenia, the process of international financial integration exerts a positive growth influence. The euro will additionally accelerate the integration.
COBISS.SI-ID: 17689830