In this paper, I estimate a cointegrated VAR with three long run equilibrium conditions that are consistent with the New Keynesian model. The equilibrium conditions estimated in the VAR do not provide evidence of a negative relationship between the federal funds rate and investment, or output...

On December 3, 2015, Mario Draghi, President European Central Bank (ECB), claims: “we are doing more because it works, not because it fails.” Really true or not?To help assess and further promote the very basics of money calculus, as well as an impetus to improve the actions taken by...

We extract the market's expectations about the ECB's negative interest rate policy from the euro area's yield curve and study its impact on the yield curve. To capture the rich dynamics taking place at the short end of the yield curve, we introduce two policy indicators that summarise the...