The interplay between banks and the macroeconomy is of key importance for financial and economic stability. We analyze this link using a factor-augmented vector autoregressive model (FAVAR) which extends a standard VAR for the U.S. macroeconomy. The model includes GDP growth, inflation, the...

1. Introduction -- 2. European money and culture before 1914 -- 3. The 1920s: Lessons from Weimar -- 4. The Jazz Age: America in the 1920s -- 5. The money-haters: experiments in socialism -- 6. Europe between the world wars: a ferment of ideas -- 7. How Europe’s culture kept money under...

This book collects selected articles addressing several currently debated issues in the field of international macroeconomics. They focus on the role of the central banks in the debate on how to come to terms with the long-term decline in productivity growth, insufficient aggregate demand, high...

This paper proposes tests of policy ineffectiveness in the context of macroeconometric rational expectations models. It is assumed that there is a policy intervention that takes the form of changes in the parameters of a policy rule, and that there are sufficient observations before and after...