Similar Search Results

Correia, Isabel; De Fiore, Fiorella; Teles, Pedro; … - C.E.P.R. Discussion Papers - 2014

How should monetary and fiscal policy react to adverse financial shocks? If monetary policy is constrained by the zero lower bound on the nominal interest rate, subsidising the interest rate on loans is the optimal policy. The subsidies can mimic movements in the interest rate and can therefore...

Persistent link: https://www.econbiz.de/10011083684

Bank and Sovereign Risk Interdependence in the Euro Area

Kollintzas, Tryphon; Tsoukalas, Konstantinos - C.E.P.R. Discussion Papers - 2015

We develop a dynamic stochastic general equilibrium model to study bank risk and sovereign risk interdependence in the Euro Area. We find that an increase in capital investment risk shock, results in a considerably deeper recession when sovereign risk is also present. This result has three...

Persistent link: https://www.econbiz.de/10011201352

Inspecting the Mechanism: Leverage and the Great Recession in the Eurozone

Martin, Philippe; Philippon, Thomas - C.E.P.R. Discussion Papers - 2014

We provide a first comprehensive account of the dynamics of Eurozone countries from the creation of the Euro to the … exports of Eurozone countries between 2000 and 2012. We then ask how periphery countries would have fared with: (i) more …

Persistent link: https://www.econbiz.de/10011084051

Public Debt and Redistribution with Borrowing Constraints

Bilbiie, Florin Ovidiu; Monacelli, Tommaso; Perotti, Roberto - C.E.P.R. Discussion Papers - 2012

In an economy with financial imperfections, Ricardian equivalence holds when prices are flexible and the steady-state distribution of consumption is uniform, or labor is inelastic. With different steady-state consumption levels, Ricardian equivalence fails, but tax cuts, somewhat paradoxically,...

Persistent link: https://www.econbiz.de/10011084445

Fiscal Discipline and the Cost of Public Debt Service: Some Estimates for OECD Countries

Ardagna, Silvia; Caselli, Francesco; Lane, Timothy - C.E.P.R. Discussion Papers - 2004

We use a panel of 16 OECD countries over several decades to investigate the effects of government debts and deficits on long-term interest rates. In simple static specifications, a one-percentage-point increase in the primary deficit relative to GDP increases contemporaneous long-term interest...

Persistent link: https://www.econbiz.de/10005067414

Inflation Targeting and Debt: Lessons from Brazil

Favero, Carlo A.; Giavazzi, Francesco - C.E.P.R. Discussion Papers - 2004

A single variable describes, day-by-day, what investors think about the state of Brazil's economy: the Brazilian component of the Emerging Market Bond Index, the Embi spread. This spread is the difference between the yield on a dollar-denominated bond issued by the Brazilian government and a...

Persistent link: https://www.econbiz.de/10005123784

Paved with Good Intentions: Global Financial Integration, the Eurozone, and the Imaginary Road to the Fabled Gold Standard

Underhill, Geoffrey R D - C.E.P.R. Discussion Papers - 2010

Regional systems of governance may resolve some of the dilemmas of global financial integration, and the eurozone is … deal with this eventuality. A third section examines the crisis in the Eurozone and the reaction to it in the light of this … successfully managed, with domestic political dynamics stimulating centrifugal tendencies among eurozone members claiming to be …

Persistent link: https://www.econbiz.de/10008784770

Growth in a Time of Debt

Reinhart, Carmen M.; Rogoff, Kenneth - C.E.P.R. Discussion Papers - 2010

We study economic growth and inflation at different levels of government and external debt. Our analysis is based on new data on forty-four countries spanning about two hundred years. The dataset incorporates over 3,700 annual observations covering a wide range of political systems,...

Persistent link: https://www.econbiz.de/10008468655

Optimal Fiscal and Monetary Policy: Equivalence Results

Correia, Isabel; Nicolini, Juan Pablo; Teles, Pedro - C.E.P.R. Discussion Papers - 2003

In this Paper, we analyse the implications of price setting restrictions for the conduct of cyclical fiscal and monetary policy. We consider an environment with monopolistic competitive firms, a shopping time technology, prices set one period in advance, and government expenditures that must be...

Persistent link: https://www.econbiz.de/10005504488

Helicopter Money: Irredeemable Fiat Money and the Liquidity Trap

Buiter, Willem H. - C.E.P.R. Discussion Papers - 2004

The Paper provides a formalization of the monetary economics folk proposition that government fiat money is an asset of the holder (the private sector) but not a liability of the issuer (the state). Money is 'net wealth' in the limited sense that, after consolidation of the intertemporal budget...

Persistent link: https://www.econbiz.de/10005504641