An important feature of transition economies such as the Central and Eastern European countries is the so-called phenomenon of dollarization. It is of particular interest since extensive currency substitution not only makes domestic monetary and fiscal policies less effective, it also makes...

We analyze within a dynamic model the growth impact of private capital investment if the accompanying adjustment costs are a function of governmental activity. The impact of the productive public input is twofold: it (i) enhances private capital productivity and (ii) reduces adjustment costs. We...

The aim of the present work is to test the predictive power of the term spread in forecasting real economic growth rates and recession probabilities in Italy. According to the most recent literature, the relationship between the term spread and economic growth rates is modelled as a nonlinear...

Contemporary economics contains mainly two approaches for an explanation of fluctuations of economic activity indicators. The first approach expresses fluctuations as the expression of an environment that is fundamentally uncertain and subject to random external shocks. The second approach...

The article contributes to a broader understanding of how firms form its opinion in regular business surveys as we identify determinants of this process. In a large micro panel data set from the Ifo Business Cycle Test in Germany we employ the log-probability model to investigate relationships...

To match the stylised facts of goods and labour markets, the canonical New Keynesian model augments the optimising neoclassical growth model with nominal and real rigidities. We ask what the implications of this type of model are for asset prices. Using a second-order numerical solution to the...

Indicators and their associated reference points are key elements of current fisheries management advice, as well as of the developing ecosystem approach to it, especially in the International Council for the Exploration of the Sea precautionary approach. However, although sustainable management...

Monetary policymakers face considerable uncertainty and have to use judgment. When the monetary policy committee (MPC) has to reach a decision based on different judgments among its members, various judgment aggregation problems may occur. Here, we consider an aggregation problem called the...

Heterogeneity between unemployed and employed individuals matters for optimal fiscal policy. This paper considers the consequences of such heterogeneity for the determination of optimal capital and income taxes in a model with matching frictions in the labor market. In line with a recent finding...

This paper examines the welfare implications of managing asset-price with consumer-price inflation targeting by monetary authorities who have to learn the laws of motion for both inflation rates. Our results show that the Central Bank can reduce the volatility of consumption and asset price...