This paper examines whether the effect of fiscal policy on output depends on the size of the financial sector. We find that this relation depends on the level of economic development. In developing countries, fiscal multipliers are higher when the financial sector is larger. The opposite is true...

This brief provides a short guiding tour to the Euro zone crisis. It looks at the current situation, the context in which the zone has to deal with such a situation, the way we got here, and the possible way out. The latter outlines a set of minimum steps required to make the euro sustainable

This paper arms central bank policy makers with ways to think about interactions between financial stability and monetary policy. We frame the issue of whether to integrate financial stability into monetary policy operating rules by appealing to the observation that in actual economies financial...

Financial markets have experienced unprecedented transformations, signs of which have emerged since the late 1970s. In recent years substantial consolidation occurred. In response to changes in macroeconomic variables, such as GDP, industrial production, inflation and the political business...

This paper arms central bank policy makers with ways to think about interactions between financial stability and monetary policy. We frame the issue of whether to integrate financial stability into monetary policy operating rules by appealing to the observation that in actual economies financial...

This paper arms central bank policy makers with ways to think about interactions between financial stability and monetary policy. We frame the issue of whether to integrate financial stability into monetary policy operating rules by appealing to the observation that in actual economies financial...

What are the quantitative macroeconomic effects of the countercyclical capital buffer (CCyB)? I study this question in a nonlinear DSGE model with occasional financial crises, which is calibrated and combined with US data to estimate sequences of structural shocks. Raising capital buffers during...

‘COVID-19’ has taken the world by storm, challenging the norm of ‘normal’ in most aspects of life. The pandemic situation ‘halted’ almost all economic activities of Sri Lanka. This review study comprehensively examines the impacts of COVID-19 on GDP, employment, poverty, tourism,...

Many infectious diseases have been detected in the world so far. Many of them are still prevalent in the world we live in today. Yet most of it does not affect us in any way. But this epidemic that is occurring at this time when civilization, medicine and technology are well developed is...

This study focuses on tracing the early economic impacts of COVID-19. The pandemic has unleashed a global shock impacting all economies in several ways. The lockdowns have brought economic activity to a standstill, with the closure of businesses and halting of travel, trade and commerce. Even as...