benign exit from the Eurozone with stable investor expectations could substantially dampen the short-run impact …

U.S. state-level banking deregulation during the 1980’s mitigated the impact of the China trade shock (CTS) on local … integration on demand for housing and on housing prices: faced with an adverse shock to their region’s terms-of-trade (i.e. the …

We build a no-arbitrage model of the yield curves in a heterogeneous monetary union with sovereign default risk, which … default probability, showing that it decreases with central bank bond-holdings. Calibrating the model to Germany and Italy, we … show that a “default risk extraction” channel is the main driver of Italian yields, and that flexibility makes asset …