Optimal nominal interest rate rules are usually set assuming that the underlying world is linear. In this paper we consider the performance of optimal rules when the underlying relationship between inflation and the output gap may be nonlinear. In particular if the inflation-output trade off...

The recovery from the global crisis that erupted in 2007 shows that the decoupling between real and financial variables during the business cycle can lead to negative and long-lasting consequences for the economy. A key feature of the past global crisis in many countries is that the recovery in...

Spatial econometrics has been criticized by some economists because some model specifications have been driven by data-analytic considerations rather than having a firm foundation in economic theory. In particular, this applies to the so-called W matrix, which is integral to the structure of...

In this paper we examine the spatial and temporal distribution of per capita income across Europe. We base our analysis on a cluster methodology which allows for an endogenous selection of regional clusters using a multivariate test for stationarity where the number and composition of clusters...

We re-connect money to in.ation using Goodfriend and McCallum's (2007) model where banks supply loans to cash-in-advance constrained consumers on the basis of the value of collateral provided and the monitoring skills of banks. We show that when shocks to monitoring and collateral dominate those...

Optimal nominal interest rates rule are usually set assuming that the underlying world is linear. Our work relaxes this assumption and examines the performance of optimal rules when non-linearities are present. In particular if the inflation-output trade off exhibits non linearities...

In this editorial we summarise and comment on papers published in issue 9.1. The first paper is by Raffaele Paci, Emanuela Marrocu and Stefano Usai 'The Complementary Effects of Proximity Dimensions on Knowledge Spillovers'. Second, we have the paper by Karyn Morrissey, Cathal O'Donoghue and...

In this editorial we summarise and comment on papers published in issue 8.4. The first paper is by Frederick Guy, entitled 'Small, Local and Cheap? Walkable and Car-oriented Retail in Competition'. Secondly we have the paper by Nicola Francesco Dotti, Ugo Fratesi, Camilla Lenzi & Marco Percoco...

In this editorial, we summarize and comment on the papers published in Issue 9.3. The first paper is entitled 'The Magnitude and Distance Decay of Trade in Goods and Services: New Evidence for European Countries', by Martin J. Burger, Mark J. P. M. Thissen, Frank G. Van Oort and Dario Diodato....