In this chapter, we propose a two-country, two-sector, New Keynesian model with essential and non-essential goods for the Euro Area to assess the macroeconomic consequences of a labor supply shock. Our model incorporates health status in the households’ maximization problem which depends on...

Portugal was the first country in Europe to join Great Britain in the Gold Standard, in 1854, having abandoned the principle of free gold convertibility in 1891. By elucidating the historical choice of the Gold Standard by the Portuguese authorities, and analysing its macroeconomic behaviour, we...