Breuss, Fritz; Fornero, Jorge A. - FIW - 2009
. The model captures the most salient features of Austria as a small open economy, the Euro Area (EA) and the United States …. Besides, welfare costs of nominal rigidities are calculated. We distinguish two sample periods, ‘pre-EMU’ and ‘EMU’. In the … that in the pre-EMU period, the EA and Austria present welfare costs close to one percent of steady-state consumption …