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prices, equity prices, and interest rates. Uncertainty shocks cause deeper recessions in Continental Europe (except Germany …) than in Anglo-Saxon countries. This pattern is compatible with the view that continental Europe still suffers from …
Persistent link: https://www.econbiz.de/10011640939
This study assesses the impact of the uncertainty caused by Brexit, on both the UK and international financial markets, for the first and second statistical moments (i.e. on changes and the standard deviations of the respective variables.) As financial markets are by nature highly interlinked,...
Persistent link: https://www.econbiz.de/10011570794
On 10 January 2013 the ECB Governing Council decided “to keep the key ECB interest rates unchanged” based on an assessment of a ‚contained‘ inflationary pressure and a weak economic activity, a contraction of real GDP in second and third quarter of 2012. Similar decisions have been taken...
Persistent link: https://www.econbiz.de/10010533181
The financial crisis affected regions in Europe in a different magnitude. This is why we examine whether regions which …
Persistent link: https://www.econbiz.de/10011381424
In light of the rising political and economic uncertainty in Europe, we aim to provide a basic understanding of the … shows a fairly consistently negative effect on the real economy in Europe. However, the implications of economic policy … uncertainty for Europe and the Euro area in particular are not so straightforward. It seems as if policy uncertainty raises …
Persistent link: https://www.econbiz.de/10011662699
We investigate whether the macroeconomic effects of government spending shocks vary with the level of uncertainty. Using postwar US data and a Self-Exciting Interacted VAR (SEIVAR) model, we find that fiscal spending has positive output effects in tranquil times but is contractionary during...
Persistent link: https://www.econbiz.de/10012116248
The interest rate is generally considered as a monetary policy tool and, at the same time, via Tobin's q, as an important driver of macroeconomic investment. As an innovation, this paper derives the exact shape of the "hysteretic" impact of changes in the interest rate on macroeconomic...
Persistent link: https://www.econbiz.de/10011994756
Policymakers in the EU member states are currently shaping rescue packages to prevent the financial crisis hitting their economies with unmitigated force. Each government is responding to the emerging problems with a country-specific set of measures. Given the global nature of the crisis, would...
Persistent link: https://www.econbiz.de/10003811803
We analyze the importance of global shocks for the global economy and national policy makers. More specifically, we investigate whether monetary policy has become less effective in the wake of financial globalization. We also examine whether there is increasing uncertainty for central banks due...
Persistent link: https://www.econbiz.de/10003884937
We assess differences that emerge in Taylor rule estimations for the Fed and the ECB before and after the start of the subprime crisis. For this purpose, we apply an explicit estimate of the equilibrium real interest rate and of potential output in order to account for variations within these...
Persistent link: https://www.econbiz.de/10003931391