Chen, Xiaoshan; Lazarakis, Spyridon; Varthalitis, Petros - 2023
households who hold more assets in the status quo equilibrium. Regarding fiscal policy mix, fiscal consolidation via spending …This paper builds a two-country Heterogenous Agents New Keynesian (HANK) model for the Euro Area (EA). The two …-2020 period. We use this model as a vehicle to study fiscal consolidation policy and reforms of EA fiscal targets. We find that …