To analyse the most important aspects of the Secular Stagnation hypothesis, this paper considers the effects of hysteresis in potential output in a New-Keynesian model that is extended with endogenous potential output. To do so, a number of simulations of relevant scenarios is undertaken. It is...

This paper studies the design, effects and interactions of monetary and fiscal policies in the euro-area and between the euro-area and the non euro-area. To do so, a stylized three-country model of monetary and fiscal policy rules is constructed. It is analyzed how monetary and fiscal rules...

Using a panel data set of the 28 EU countries from 1970 to 2015, we study the nature of monetary and fiscal policies of both respective authorities and assess how economic and institutional events influence each authority's reaction functions. Our results show that, for the all period under...