This paper argues that the lack of timely and decisive policy action to correct domestic and external imbalances contributed crucially to the build-up of financial excesses that led to the financial crisis and the Great Recession. We focus on 2002-07 and perform a number of counterfactual...

Economic development of a state can be well defined as quantitative alterations in macroeconomic variables, which upsurge the overall production or yield over a certain period, equated to the preceding period. Amongst many some principal macroeconomic aspects that donate towards the progression...

This paper presents a global model linking individual country vector error-correcting models in which the domestic variables are related to the country-specific variables as an approximate solution to a global common factor model. This global VAR is estimated for 26 countries, the euro area...