This paper takes a first step in analysing how a monetary union performs in the presence of labour market asymmetries. Differences in wage flexibility, market power and country sizes are allowed for in a setting with both country-specific and aggregate shocks. The implications of asymmetries for...

Exceptionally large monetary and fiscal policy measures have been implemented globally to counteract the adverse economic consequences of the covid-19 crisis. The analysis first provides an overview of some of the measures taken to support liquidity and lending in the US, Germany, Sweden and...