The macroeconomic experience of the last decade stressed the importance of jointly studying the growth and business cycle fluctuations behavior of the economy. To analyze this issue, we embed a model of Schumpeterian growth into an estimated medium-scale DSGE model. Results from a Bayesian...

Oil prices have fallen by around 40% in euro terms since mid-2014, and are expected to remain relatively low in the medium term. With this situation in mind, this section assesses the effect of changes in oil prices on inflation and economic activity in the euro area. The analysis shows that the...