This paper reviews the application of two-country Dynamic Stochastic General Equilibrium (DSGE) models in the case of the euro area. By employing a search strategy across Scopus and Web of Science databases, this review identifies "Key Papers" that develop, calibrate, or estimate DSGE models for...

We investigate the extent to which the effect of the 2018/2019 US import tariff hikes on US (post-tariff) import prices was offset by the concurrent appreciation of the US dollar and trace the source of the appreciation back to US trade policy itself. The dollar response to trade policy...

How does a monetary union alter the impact of business cycle shocks at the household level? We develop a Heterogeneous Agent New Keynesian model of two countries (HANK2) and show in closed form that a monetary union shifts the adjustment to a shock horizontally - across countries - within the...

In den 24 Jahren seines Bestehens hat der Euro eine Finanzkrise, eine Staatsschuldenkrise, eine globale Pandemie und eine Energiekrise erlebt - und auch überlebt. Mit Hilfe eines Modells, dass auf die Haushaltsebene abstellt, zeigt dieser Wochenbericht, dass die Stabilität der Währungsunion...