We introduce a novel static indicator of economy-wide resilience that assesses an economy’s ability to adapt and recover from negative shocks originating from either the demand or supply side. This metric is counterfactual and, through simulation, reveals the extent of adjustments required to...

The European Commission's "NextGenerationEU" COVID-19 recovery package has underscored interest in the size of regional fiscal multipliers in Europe. While the objective of these funds is the long-term transformation toward more sustainable green growth and digitalization in EU economies,...

Fiscal multipliers decrease nonlinearly as the private sector anticipates a higher likelihood of NIRP in the future. While the on-impact fiscal multiplier at the ZLB is above the unity without any expectation about NIRP in the future, it falls below 1 when the agents expect the economy to switch...