Benigno and Fornaro (2014) show that an episode of low interest rates may harm an economy. Low interest rates trigger a consumption boom, labor shifts away from the tradable sector, learning spillovers from foreign technology decline and so do domestic total factor productivity, consumption and...

Benigno and Fornaro (2014) show that an episode of low interest rates may harm an economy. Low interest rates trigger a consumption boom, labor shifts away from the tradable sector, learning spillovers from foreign technology decline and so do domestic total factor productivity, consumption and...

According to the theory, even does not exist a terminological consensus regarding the concept of “governance”, it comes from the comparative policy field or from international relations one and refers to alternative models of governing. By taking into consideration the above-mentioned...

This paper estimates a two-country open economy DSGE model by using U.S. and Euro Area data. The baseline model, where the two regions are linked only through the trade of goods and risk-free bonds, fails to replicate the high cross-regional macro-economic correlation in the data. I search for...

We study linkages between financial development, international trade, and long-run growth using data since 1880 for 17 now-developed “Atlantic” economies and a set of cross country and dynamic panel data models. We find that finance and trade reinforce each other in data before 1930, but...