monetary policy shock depends on the degree of economic regulation in different markets. In particular, financial (product … for 19 OECD countries. Our empirical results support the theory. We therefore conclude that following a monetary policy …

After an expansionary monetary policy shock employment increases and unemployment falls. In standard New Keynesian …

bargaining shock. We then impose these restrictions on a Global VAR consisting of Germany and 8 EMU countries to identify a wage … bargaining shock in Germany. Our results show that, although the German current account was significantly affected by wage …

, significantly increases volatility of consumption and employment in the face of asymmetric shocks. We propose a simple transfer … mechanism between member countries of the union that reduces this volatility. Furthermore, we show that this mechanism is more … households while in the long run deeper integration of goods markets could reduce volatility significantly. Regarding its …

We estimate the effects of a negative asymmetric demand shock on the real exchange rate for the euro area vis-à-vis the … output, confirming its shock-absorbing capacity before and during the ZLB episode. The stabilizing role of the exchange rate …