This paper uses a multi-region DSGE model with collateral constrained households and residential investment to examine the effectiveness of fiscal policy stimulus measures in a credit crisis. The paper explores alternative scenarios which differ by the type of budgetary measure, their length,...

This paper uses a multi region DSGE model with collateral constrained households and residential investment to examine the effectiveness of fiscal policy stimulus measures in a credit crisis. The paper explores alternative scenarios which differ by the type of budgetary measure, its length, the...

Real convergence in the recently acceded EU member states (RAMS) is taking place in a new environment, with important implications for convergence and vulnerabilities. Financial liberalization can increase temporary imbalances, while financial integration provides the necessary external finance...

This paper discusses the foundations for a medium-term fiscal framework for Bulgaria, a transition economy aspiring to join the European Union. The paper argues that a well-designed framework can help to enhance the credibility of macroeconomic policies and facilitate preparations for EU...

In recent years, fiscal performance in Central Europe has steadily deteriorated, in contrast to the improvement in the Baltics. This paper explores the determinants of such differences among countries slated for EU accession. Regression estimates suggest that economic and institutional...

This papers looks into the impact of the Covid-19 pandemic on the European Union. The current crisis found European economies in very different situations regarding their economic fundamentals and fiscal capacities to support their economies. Thus, the need for a strong EU level policy response...