Showing 1 - 7 of 7
Contrary to the traditional assumption of interest rates on government debt exceeding economicgrowth, negative interest-growth differentials have become prevalent since the global financialcrisis. As these differentials are a key determinant of public debt dynamics, can we sleep moresoundly,...
Persistent link: https://www.econbiz.de/10012836525
This paper contrasts real exchange rate (RER) measures based on different deflators (CPI, GDP deflator, and ULC) and discusses potential implications for the link-or lack thereof-between RER and external balance. We begin by documenting patterns in the evolution of different measures of RERs,...
Persistent link: https://www.econbiz.de/10012956476
The spread of COVID-19, containment measures, and general uncertainty led to a sharp reduction in activity in the first half of 2020. Europe was hit particularly hard—the economic contraction in 2020 is estimated to have been among the largest in the world—with potentially severe...
Persistent link: https://www.econbiz.de/10013226439
Product scope adjustment is a key mechanism through which multi-product firms achieve efficient resource allocations. In this paper, we take a novel perspective to study firms' product scope adjustment behavior through the lens of asset pricing. Using a unique panel scanner data set containing...
Persistent link: https://www.econbiz.de/10012950405
Supply constraints hurt the economic recovery and boosted inflation in 2021. We find that in the euro area, manufacturing output and GDP would have been about 6 and 2 percent higher, respectively, and half of the rise in manufacturing producer price inflation would not have occurred in the...
Persistent link: https://www.econbiz.de/10013295128
We document the importance of import prices and domestic profits as a counterpart to the recent increase in euro area inflation. Through a novel consumption deflator decomposition, we show that import prices account for 40 percent of the average change in the consumption deflator over 2022Q1 –...
Persistent link: https://www.econbiz.de/10014353730
Reducing transport sector emissions is an important pillar of the green transition. However, the transition to electric vehicles (EV) portends major changes in vehicle manufacturing activity, on which many livelihoods in Europe depend. Using the heterogeneity across European countries in the...
Persistent link: https://www.econbiz.de/10014354109