is described using a stochastic regime-switching model; second, the euro area governments’ responses to uncertain … macroeconomic policies in Greece are considered. The model's mechanism and assumptions allow either for a Grexit from the euro area … understand key drivers of the long-winded negotiations between the Syiza government and the euro area governments. …

bond markets and improved economic sentiment, as reflected in higher equity prices. In contrast, passive euro liquidity … provision and even active measures (policy rate reductions and bond market interventions) delivered modest results. Although …. Overall, the results point to the ECB's limits in helping improve financial market's sentiment. …

Macroeconomic adjustment in the euro area periphery was more recessionary than pre-crisis imbalances would have …

this result in a dynamic general equilibrium model where market participants have heterogeneous liquidity needs and where … money market rate and the volumes traded at the ECB's deposit and lending facilities in response to the recent financial … crisis. -- monetary policy ; open market ; operations ; standing facilities …