KEY ISSUES Context. Economic performance has improved over the last year. The recovery is taking hold, although domestic activity remains weak, in part constrained by weak banks and inefficient state-owned enterprises (SOEs). Inflation has declined, the current account remains in large surplus,...

A two-country sticky-price model is used to analyse the interactions between fiscal and monetary policy. The role of an u0091activistu0092 fiscal policy as a stabilisation tool is considered and a measure of the welfare gains from international fiscal policy cooperation is derived. It is found...

The presence of a lower bound of zero on nominal interest rates has important implications for the conduct of optimal monetary policy. Standard rational expectations models can have alternative steady states as well as non-unique laws of motion, i.e. there can be possible sunspot equilibria....

We use a Vector Auto Regression (VAR) analysis to explore the (spill-over) effects of fiscal policy shocks in Europe. To enhance comparability with the existing literature, we first analyse the effects of these shocks at the national level. Here, we employ identification based on Choleski...

1. In der lohnpolitischen Theorie und Praxis orientiert man sich in der Bundesrepublik Deutschland immer noch am anti quierten Modell des "geschlossenen Arbeitsmarktes": Arbeit geber- und Arbeitnehmerkartelle fixieren "autonom" das nationale Reallohn- und das nationale Realgewinnniveau, wo raus...

1. In der lohnpolitischen Theorie und Praxis orientiert man sich in der Bundesrepublik Deutschland immer noch am anti quierten Modell des "geschlossenen Arbeitsmarktes": Arbeit geber- und Arbeitnehmerkartelle fixieren "autonom" das nationale Reallohn- und das nationale Realgewinnniveau, wo raus...