The credit-driven housing net worth channel has been identified as a determinant of the sharp drop in US employment between 2007 and 2009. We examine the impact of this channel on the labour market in Europe using panel data for 20 countries covering the period 1996 to 2017. This period saw...

In the growing literature on the importance of household balance sheets to macroeconomic developments, the relationship between housing wealth and fiscal outturns needs consideration given the likely links between housing market developments and particular tax headings. We adopt the housing net...

The cyclicality of fiscal policy in Ireland in the budgetary plans put before parliament and ex-post is considered. Data in budgetary documents and particular econometric estimation procedures help address endogeneity issues and provide numerous variable-estimation procedure combinations for...

An understanding of the house price to rent ratio and its determinants is important in assessing housing market developments and tenure choice therein. While the ratio is most usually explained by the user cost of capital, the influence of credit conditions on it has been added to econometric...

Applying a t-DCC-GARCH model to daily spread data, four phases of interaction in euro area sovereign bond markets are identified between January 2008 and June 2013. The initial period (January-October 2008) is followed by a general rise in pairwise correlation values between November 2008 and...

The Italian sovereign bond market experienced considerable disruption in May 2018 and subsequent months amid concerns about the fi scal implications of political developments in Italy. This episode is used to examine relationships among the euro area bond markets some six years after the euro...

David Cronin and Daniel McCoy observe that, in contrast to most other EU member states, Ireland is fortunate to have time on its side to deal with the fiscal sustainability issues that an ageing population will present. This is so both because the Irish economy has had several years of strong...

The paper on the Irish experience by Cronin and McCoy highlights how specific features of the economy may account for large differences in the results of the two approaches – those based on a production function and those relying on statistical filters – and hinder accurate estimates of the...

The influence of commodity prices on consumer prices is usually seen as originating in commodity markets. We argue, however, that long run and short run relationships should exist between commodity prices, consumer prices and money and that the influence of commodity prices on consumer prices...

Brunnermeier et al. (2016) propose the introduction of sovereign bond-backed securities (SBBS) in the euro area. That and other papers only address how the securitization would insulate senior bond holders from actual default-related losses. This paper generalizes the assessment by using the...