We build a tractable two-agent New Keynesian (TANK) model to jointly study four types of policy: conventional monetary policy, quantitative easing (QE), government expenditures, and lump-sum transfers. We find QE, transfers, and government spending can have the same effects on the aggregate...

Do sanctions strengthen the targeted regime? I analyze the 2014 imposition of Western sanctions on Russia and its impact on voting. The United States and the European Union introduced targeted measures against Russian entities and individuals related to President Putin’s regime. Using polling...

Highly interconnected global supply chains make countries vulnerable to supply chain disruptions. In this paper, we estimate the macroeconomic effects of global supply chain shocks for the euro area. Our empirical model combines business cycle variables with data from international container...

This paper investigates whether foreign direct investment (FDI) inflows are higher in countries ruled by trustworthy-looking or competent-looking leaders. After collecting pictures of 276 nondemocratic leaders in office between 1975 and 2010, we use a computer-based survey to assess how these...

The fifth biennial ECB conference on Fiscal policy and EMU governance brings together participants including from academia, the central banking community, European and international organisations. This year’s conference will address the fiscal policy response and monetary and fiscal policy...

Governments around the world have gone on a massive fiscal expansion in response to the Covid crisis, increasing government debt to levels not seen in 75 years. How will this debt be repaid? What role do conventional and unconventional monetary policy play? We investigate debt sustainability in...

It is being investigated the relationship between oil windfalls and income inequality using the subnational data of one of the resource-richest and most unequal countries in the world – Russia. While previous literature has produced contradictory findings due to the use of an aggregate measure...

Western sanctions exposed Russia’s key vulnerabilities - dependence on Western capital and advanced technology, with knock-on effects in other sectors. In response, Russia launched a policy of import substitution and attempted to diversify to non-Western countries to mitigate the impact of...

The coronavirus (COVID-19) pandemic and the resulting lockdowns have created a deep global recession, induced massive government interventions and forced a change in the social and economic behaviour of economic agents. This raises many questions about the path to economic recovery and the...

Topics: - International spillovers and spillbacks from monetary, macroprudential and fiscal policies; - Global determinants of low interest rates and inflation; - Financial risk-taking in a global environment of low interest rates; - Policy challenges in managing large and volatile cross-border...