We investigate the effects of a US economic policy uncertainty shock on some Euro area macroeconomic aggregates via Structural VARs. We model the indicators of economic policy uncertainty recently developed by  Baker et al. (2013) jointly with the aggregate price indexes and alternative...

In an article published in the American Economic Review, J?n Steinsson (2008) argues that two sticky price models driven by real shocks can explain the observed persistence, volatility and hump-shaped impulse response function of the real exchange rate. This comment shows, first, that correcting...

This paper examines capital inflow dynamics for varying degrees of financial openness under a Taylor-type rule. The findings show that higher openness generates a more sensitive response in nontradable inflation, and that optimal monetary policy varies with the degree of openness.

This paper investigates the sources of output volatility by decomposing the international shocks into finance and trade shocks. Through structural Bayesian estimations of an open-economy DSGE model on 16 countries, on average, international shocks explain around 70% of output fluctuations.

The spreading of the 2007–09 global financial crisis has highlighted the need to increase the resilience of the financial sector to contagion shocks. Debt financed by foreign banks has been found to increase the financial fragility of the borrowing country in situations of financial contagion,...