This paper employs stochastic simulations of a small structural rational expectations model to investigate the consequences of the zero bound on nominal interest rates. We find that if the economy is subject to stochastic shocks similar in magnitude to those experienced in the U.S. over the...

The paper summarises the outcomes of a research project on u0093The Eastward Enlargement of the Eurozoneu0094 that has been, since 2001, conducted by leading research institutions from Estonia, Finland, Italy, Poland, Portugal and Slovenia, coordinated by the Freie Universität Berlin's Jean...

This paper analyses the link between the forthcoming EU enlargement and selected aspects of EU institutional reforms, namely decision-making rules in the European Central Bank and the status of the Eurogroup. It states that some earlier arguments calling for urgent ECB reform are based on...