We show that trade credit in production networks is important for the transmission of unconventional monetary policy. We find that firms with bonds eligible for purchase under the European Central Bank's Corporate Sector Purchase Program act as financial intermediaries and extend more trade...

This paper investigates the extent to which business cycles of 15 ECOWAS countries are synchronized; which is one of the indicators of an optimum currency area. We employ wavelet tools to compute business cycle similarities and the distance matrix. Wavelet-spectra clustering indicates that Gambia,...

This paper uses a core-periphery distinction to characterize contemporary economics, economic methodology, and also today’s world economy. First, it applies the distinction to the organization of contemporary economics through an examination of the problem of explaining economics’ relations...

Research on economic complexity has shown that a country’s type of exports conditions its future path of economic diversification and economic growth. Yet little emphasis has been put on the inequality associated with the types of products traded between countries and different regions of the...

Recent empirical evidence suggests that financial networks exhibit a core periphery network structure. This paper aims at giving an economic explanation for the emergence of such a structure using network formation theory. Focusing on intermediation benefits, we find that a core periphery...

The gains from international macroprudential policy coordination are studied in a two-region, core-periphery macroeconomic model with imperfect financial integration and cross-border banking. Financial frictions occur at two levels: between firms and banks in each region, and between periphery...

Income inequality has had a minor role in the European integration process' institutional framework. This is particularly unfitting given that reducing disparities has been one of the most explicit and firm goals of the EU, which has consequently devoted an increasing share of its budget to...