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This note argues that in a situation of an inelastic natural gas supply a restrictive monetary policy in the euro zone could reduce the energy bill and therefore has additional merits. A more hawkish monetary policy may be able to indirectly use monopsony power on the gas market. The welfare...
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spillover effects in Russia and Eastern Europe. The hypothesis is tested using OLS estimations of event-based regressions on … monetary policy event dummies and seven financial variables in eleven East European countries including Russia. Overall, the … Europe and Russia. Notably, bilateral integration with the eurozone is a key determinant of the strength of spillovers, with …
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A common assumption in macroeconomics is that energy prices are determined in a world-wide, rather frictionless market. This no longer seems an adequate description for the situation that much of Europe currently faces. Rather, one reading is that shortages exist in the quantity of energy...
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