. Our results show that given the current degree of openness of the US and euro area economies, the gains from monetary …

description of the two main aggregate euro area models at the ECB. Both models share a common core but their detailed … block, which is useful for conditioning the euro area projections on assumptions about foreign economic activity, prices and …

) model for the United States (US) and the euro area (EA). The main features of the new open economy macroeconomics (NOEM) are …

for the euro area. The model incorporates various other features such as habit formation, costs of adjustment in capital … in the euro area. Using the estimated model, the paper also analyses the output (real interest rate) gap, defined as the …