Chen, Xiaoshan; Lazarakis, Spyridon; Varthalitis, Petros - 2023
This paper builds a two-country Heterogenous Agents New Keynesian (HANK) model for the Euro Area (EA). The two … countries differ in the degree of public indebtedness, i.e., the Periphery has a relatively higher public debt-output ratio vis … public debt asymmetry can explain qualitatively, and to some extent quantitatively, EA macroeconomic imbalances and within …