This paper develops a DSGE model with investment and capital accumulation build along demand-driven explanations of the Great Recession. Specifically, following Farmer (2013), I set forth a search framework in which households decide about consumption while firms decide about recruiting effort...

Reorganizing European fiscal policy is a main topic in current reform considerations. In particular, the creation of a European stabilization mechanism is being discussed. This study examines the macroeconomic effects of a stabilization fund, the economic consequences of which are analyzed in an...

Eine Neugestaltung der europäischen Fiskalpolitik ist ein Kernthema aktueller Reformüberlegungen. Dabei wird insbesondere über die Schaffung eines europäischen Stabilisierungsmechanismus diskutiert. Diese Studie befasst sich mit den zu erwartenden makroökonomischen Auswirkungen eines...

In den 24 Jahren seines Bestehens hat der Euro eine Finanzkrise, eine Staatsschuldenkrise, eine globale Pandemie und eine Energiekrise erlebt - und auch überlebt. Mit Hilfe eines Modells, dass auf die Haushaltsebene abstellt, zeigt dieser Wochenbericht, dass die Stabilität der Währungsunion...

In the 24 years since its introduction, the euro has experienced a financial crisis, a government debt crisis, a global pandemic, and an energy crisis-and survived. Using a model focusing on households, this Weekly Report shows that the monetary union's stability is rooted in the fact that the...

Since Barnett derived the user cost price of money, the economic theory of monetary services aggregation has been developed and extended into a field of its own with solid foundations in microeconomic theory. Divisia monetary aggregates have repeatedly been shown to be strictly preferable to...

Over the past 15 years there has been remarkable progress in the specification and estimation of dynamic stochastic general equilibrium (DSGE) models. Central banks in developed and emerging market economies have become increasingly interested in their usefulness for policy analysis and...