dollar shock, generalised impulse response function shocks and a global shock to risk aversion. Our results show that the way … depends crucially on the nature of the shock. This result is noteworthy given the apparent divergence in competitiveness …

the NMS, by using a Bayesian estimation that combines information across countries. The impulse responses in the NMS are …

have stronger effects on output, consumption, and wages in the earlier sample. We try to account for this observation …

intermediation turns an otherwise diversifiable source of idiosyncratic economic uncertainty, the ‘risk shock’, into a systemic force …

aggregate. The impulse responses show that a positive shock to foreign liquidity leads for the euro area to a permanent increase … in M3 and in the price level, a temporary rise in real output and a temporary appreciation of the euro real effective … exchange rate. Moreover, we find that innovations in global liquidity play an important role in explaining price and output …

easing (QE). We study how lending responds to each shock using detailed bank, firm, and household data from Portugal, a …

This paper presents first the estimation of a two-country DSGE model for the euro area and the rest … specific policy actions in the optimal allocation. However, the direct effects of oil prices should be allowed to exert their …

, with a contractionary shock leading to a downward revision of expectations. Second, we show that firms’ response depends on … the size and the sign of the shock, with only large and contractionary shocks having a significant negative effect on … expectations. Third, we observe that the different components of central bank communication (i.e. the pure monetary policy shock …