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This paper aims at estimating the impact of the recent Asset Purchase Programs implemented by the ECB – known as Quantitative easing (QE) – on external assets and liabilities recorded in one economy's International Investment Position (IIP). Our analysis focused on the case of France. We...
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consumption. The implied higher stock of liquidity also loosens the borrowing constraints faced by firms, thereby raising labour … demand and possibly the real wage. Whether private consumption and wages actually rise or fall ultimately depends on the …
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.e. an impact output multiplier larger than one and a crowding-in of private consumption). The estimated share of hand …-to-mouth consumers is too small to replicate the positive response of private consumption …
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