The main problem facing policymakers during the corona virus pandemic is how to mitigate its humanitarian and economic costs. Doing so invariably involves trading off some costs against others as well as short-term against longer-term consequences. We provide an overview of economic literature...

The output gap is a commonly used tool to assess the state of the business cycle, and as such, a key input for policy makers. In this article, we employ principal components analysis (PCA) to derive an estimate of the output gap in Finland that summarizes the information of widely used cyclical...

While corporate credit losses have been low since the start of the Covid-19 pandemic, their future evolution is quite uncertain. Using a forecasting model with a solid track record, we find that the baseline scenario ("expected losses") is benign up to 2024. This is due to policy support...

We analyze the relationship of the distribution of future GDP growth and accumulation of household debt in Finnish macroeconomic data from 1980 to 2019. We find clear evidence that exuberant accumulation of household debt is related to the thickening of the left tail of the future growth...

The main contribution of this paper is the construction of a cyclical systemic risk indicator from early warning indicators of banking crises (EWIs) used in Finland. Previous research has shown that combining EWIs can enhance their early warning properties. This study evaluates the indicator's...

We study the yield curve control in Eurozone. We apply Chen, Cúrdia and Ferrero (2012) model that uses a financial friction to break Wallace's neutrality. We calibrate a bond supply shock that corresponds to the observed change in the time premium in euro area when the APP program was...

The report provides an overview of environmentally harmful subsidies in Germany and makes proposals for their reform or reduction. It focuses on subsidies that have a negative impact on the environmental goods climate, air, soil, water, biodiversity and landscape, as well as on health and the...

This policy brief prepared by ECLAC examines the economic and social impact of the war in Ukraine on the region, and offers countries recommendations on how to address its effects. The document analyzes economic and social variables as well as the different sectors of the regional economy that...

The coronavirus disease (COVID-19) pandemic is the worst global crisis since the Second World War, with developing countries suffering more devastating economic and social effects than developed countries. Governments’ increased pandemic-related expenditure combined with the drastic fall in...