We augment a standard monetary DSGE model to include a banking sector and financial markets. We fit the model to Euro Area and US data. We find that agency problems in financial contracts, liquidity constraints facing banks and shocks that alter the perception of market risk and hit financial...

The recent financial crisis has highlighted the limits of the "originate to distribute" model of banking, but its nexus with the macroeconomy and monetary policy remains unexplored. I build a DSGE model with banks (along the lines of Holmström and Tirole [28] and Parlour and Plantin [39]) and...

Although recent research shows that the euro has spurred cross-border financial integration, the exact mechanisms remain unknown. We investigate the underlying channels of the euro’s effect on financial integration using data on bilateral banking linkages among twenty industrial countries in...

We introduce professional financial advice in households’ choice to hold risky financial assets. Consistent with the predictions from a formal model, we present evidence that households’ trust in financial advice only matters when their perceived own financial capability is low. Instead, for...

The paper shows that monetary policy shocks exert a substantial effect on the size and composition of capital flows and the trade balance for the United States, with a 100 basis point easing raising net capital inflows and lowering the trade balance by 1% of GDP, and explaining about 20-25% of...

This study focuses on the assessment of index tools for agricultural insurances. Index insurances basically differ from traditional agricultural insurances in that they do not refer to the actual farm losses, but to the losses evaluated from an index. This index can be, for example, some area...

Climate change is already happening. Regardless of international progress to reduce emissions of the greenhouse gases that cause climate change, the climate system will continue to adjust for the next few decades to past and present emissions. This will bring unavoidable impacts on natural and...

This study compiles and summarizes the existing knowledge about observed and projected impacts of climate change on forests in Europe and reviews options for forests and forestry to adapt to climate change. It has been commissioned by the Directorate General for Agriculture and Rural Development...