including a global liquidity aggregate. The impulse responses obtained show that a positive shock to extra-euro area liquidity … leads to permanent increases in the euro area M3 aggregate and the price level, a temporary rise in real output and a … play an important role in explaining price and output fluctuations in the euro area and in the global economy. …

helps to explain the sluggishness of inflation and the persistence of output after a monetary policy shock. The ability of …In order to explain the joint fluctuations of output, inflation and the labor market, this paper first develops a … application of the minimum distance estimation. The estimated model can explain the cyclical behavior of employment, hours per …

percent. The variability of output increases significantly and that of inflation also rises somewhat. Also, we show that the … asymmetry of the policy ineffectiveness induced by the zero bound generates a non-vertical long-run Phillips curve. Output falls …

We revisit recent evidence on how monetary policy affects output and prices in the U.S. and in the euro area. The … output changes. In the euro area investment is the predominant driver of output changes, while in the U.S. consumption shifts … are significantly more important. We dub this difference the output composition puzzle and explore its implications and …