We argue that the characterization of the financial turmoil in the European Monetary Union as merely a sovereign debt crisis is inaccurate insofar as the deterioration of public finances represents the culmination of a process: legal and institutional flaws laid the ground for a public debt...

We consider how differences between the way firms react to a common monetary policy affect the performance of a monetary union. A model is presented in which heterogeneous firms respond discontinuously to monetary shocks. The implication is that the level of economic activity has a selective...

The relationship between inflation and real GDP growth is one of the most widely researched topics in macroeconomics. At the same time, it is certainly not an exaggeration to claim that this nexus also stands at the heart of monetary policy, given the fact that low inflation in combination with...