This paper examines the macroeconomic consequences of rigidities in the European labour markets, and shows that attempts to impose a single monetary regime on economies with different structures can lead to a breakdown in co-ordination. Such breakdowns can occur when expenditure-switching...

In this paper we examine the effects of private agents being less than fully rational in their expectations. We examine this in the context of monetary policy, where the Central Bank may have uncertain preferences either by choice or by necessity. The new feature is that we allow the public to...

In their seminal paper, Morris and Shin (Amer Econ Rev 92(5): 1521–1534, <CitationRef CitationID="CR11">2002a</CitationRef>) argued that increasing the precision of public information is not always beneficial to social welfare. Svensson (Amer Econ Rev 96: 448–451, <CitationRef CitationID="CR15">2006</CitationRef>) however has disputed this by saying that although feasible, the...</citationref></citationref>

We show how simple statistical techniques for capturing critical transitions used in natural sciences, fail to capture economic regime shifts. This implies that we need to use model-based approaches to identify critical transitions. We apply a heterogenous agents model in a standard housing...

This Occasional Study wraps up the modelling work that has been done in recent years regarding DNB's multi-country model EUROMON. It offers a description of the current version of the model and provides information about its simulation properties through the analysis of variety of standard...