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...

This paper investigates the performance of optimised interest rate rules when there is uncertainty about a key determinant of the monetary transmission mechanism, namely the degree of persistence characterising the inflation process. The paper focuses on the euro area and utilises two variants of...

This paper summarises the results of a quantitative study of the possible impact of downward nominal wage rigidity on the determination of inflation and output in the euro area and the existence of a non-vertical long-run Phillips curve. The study was undertaken in the context of the review of...

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....

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...

Social expenditure in Poland appears to increase regional employment disparities. In particular, the farmers' social fund (KRUS) seems to contribute to the rising regional dispersion in the number of recipients of social transfers. This is the result of KRUS benefits being poorly related to...

The European Commission promotes geographical mobility as a strategy to reduce discrepancies between supply and demand in European labour markets. While migration levels are low within and across EU Member States by comparison with other OECD regions, the proportion of EU migrants working in the...

Die Europäische Kommission fördert die geografische Mobilität als Strategie zur Verringerung von Diskrepanzen zwischen Angebot und Nachfrage auf den europäischen Arbeitsmärkten. Während die Migrationswerte innerhalb der EU-Mitgliedstaaten und zwischen den EU-Mitgliedstaaten im Vergleich zu...

Across Europe, new forms of employment are emerging that are different from traditional standard or non-standard employment in a number of ways. Some transform the relationship between employer and employee, some change work organisation and work patterns, and some do both. This report...

The level of youth unemployment is alarmingly high in several EU Member States, with rates of over 50% recorded in Spain and Greece in 2013. In light of the potential of entrepreneurs to create employment and sustainable growth, promoting youth entrepreneurship and making Europe more...