We examine the lending behaviour of small and large banks in the Eurozone during the sovereign debt crisis. Relative to large banks, small banks are less pro-cyclical in that they exhibit more stable lending growth across credit expansion and contraction periods. In peripheral countries, the...

In this chapter we document fiscal policy developments in the main euro area economies over the last two decades and highlight the dramatic changes triggered by the COVID-19 pandemic. We analyse how euro area yield curves respond to COVID-19 related expectations of fiscal expansion. We show how...

With comprehensive financial data from Bureau van Dijk and gridded weather data from E-OBS, we estimate the impact of temperature shocks on small and micro firm performance across Europe. Our study contributes to the limited economic climate literature outside the US market and is the first...