By using the recent Gertler and Kiyotaki's (2010) setup, this paper explores the interaction between real distortions stemming from the labor market institutions and financial shocks. We find that neither labor market imperfections nor fiscal institutions determining tax wedges have an impact on...

In this paper we investigate the roots, nature and consequences of the exit strategies that have already been implemented or are likely to be implemented in the EMU countries after the financial and economic crisis. We show that there is a deflationary bias in the current institutional...

People’s perception of their own well-being depends on, among other factors, the household level of income and wealth, the respondent’s socio-economic characteristics (sex, age, employment status, etc..) and social capital endowment of household place of residence (Sen A., 1985, The Standard...