We explore the international spillovers from fiscal policy shocks via trade in Europe. A fiscal expansion stimulates domestic activity, which leads to more foreign exports and, hence, higher foreign output. To quantify this, we combine a panel VAR model in government spending, net taxes and GDP...

The article shows the optimal monetary policy problem in three different cases. The first is optimization "under discretion". This means that a central bank can reoptimize its behaviour each period and is not history dependent. The second approach is optimization "under commitment" which means...

The paper deals with a baseline New Keynesian DSGE model for a closed economy. The model follows the concept of the New Open Economy Macroeconomics based on microeconomic foundations enriched with real and nominal rigidities. It is estimated with Bayesian technique using quarterly Eurozone data....

This paper provides a discussion of the `housing market' channels of the monetarytransmission mechanism (MTM) and offers some evidence on institutional differences in the European housing and mortgage markets. Using a number of VAR models, estimated individually for nine European countries over...