crises of the euro area: the Financial crisis of 2007-2008 and the subsequent Great Recession, the European sovereign debt … crisis, and the COVID-19 recession. We show that the model, due to non-linear responses, is capable of predicting a severe … crisis arising endogenously around the most intense phase of the Great Recession in the euro area without any exogenous …

The Financial Crisis of 2008, and the Great Recession in its wake, have shaken up macroeconomics. The paradigm of the …, fails to capture key elements of the recent crisis. This paper reviews the current reappraisal of the paradigm in the light … of the history of macroeconomic thought. Twice in the past 80 years, a major macroeconomic crisis led to the breakthrough …

, as they implied a slow recovery following the financial crisis. …