This paper proposes a central fiscal capacity for the euro area that generates transfers in response to eurozone … achieved in response to the eurozone and regional shocks, while country-specific shocks were on average less severe and …

standard models, after a large recessionary shock accommodative monetary and fiscal policy together may be necessary to …

manipulation. Our scheme works as follows: if a sector is hit by a bad shock at the world market level, then a country with an …

shock (demand shock, access-to-finance shock, ‘availability of supplies' shock), but differs according to the direction of … the shock (positive or negative), its size and persistence. In 2010-13, firms responding to negative shocks were most … likely to reduce employment, then hourly wages and then hours worked, regardless of the source of the shock. Results for the …