We evaluate the effects of permanently reducing labour tax rates in the euro area (EA) by simulating a large-scale open …

We incorporate financial linkages in EAGLE, a New Keynesian multi-country dynamic general equilibrium model of the euro … EAGLE-FLI (Euro Area and Global Economy with Financial Linkages), banks collect deposits from domestic households and cross …-country interbank market and raise capital to finance loans issued to domestic households and firms. In order to borrow from local …

The euro area experience during the financial crisis highlighted the importance of financial and sovereign risk factors … with its cross-country heterogeneity within the euro area, focusing on Germany, France, Italy, Spain, and rest-of-euro area …. We construct three stylised macro-financial scenarios as a synopsis of the euro area financial crisis and argue that the …

EAGLE, a large-scale multi-country dynamic general equilibrium model of the euro area. Social contributions paid by firms … Portugal. Third, the trade balance improves when the fiscal devaluation is enacted also in the rest of the euro area, albeit to …

We quantitatively assess the macroeconomic effects of country-specific supply-side reforms in the euro area by … Germany (or, alternatively, Portugal) and the rest of the euro area. Our main results are as follows. First, there are … (Portuguese) labor and services market would induce an increase in the long-run German (Portuguese) output equal to 8.8 (7 …

Building on the New Area Wide Model, we develop a 4-region macroeconomic model of the euro area and the world economy …. The model (EAGLE, Euro Area and Global Economy model) is microfounded and designed for conducting quantitative policy … analysis of macroeconomic interdependence across regions belonging to the euro area and between euro area regions and the world …

application to the euro area. Accounting for a high degree of openness and a strong dependence on intra and extra union trade, we … response. To do so, we use a unified modelling framework: The Euro Area and the Global Economy (EAGLE) model. Furthermore …

Differences in labour market institutions and regulations between countries of the monetary union can cause divergent … responses even to a common shock. We augment a multi-country model of the euro area with search and matching framework that …-country heterogeneity in labour market institutions for the conduct of monetary policy in a monetary union. We compute responses to an …

In this paper, we utilise the multi-country version of the NAWM to analyse the impact of globalisation on euro area … output in emerging Asia and its impact on total factor productivity in the euro area, and a shift in international … emerging Asia on euro area total factor productivity. Additionally, we provide evidence that structural reforms in goods and …

Building on the New Area Wide Model, we develop a 4-region macroeconomic model of the euro area and the world economy …. The model (EAGLE, Euro Area and Global Economy model) is microfounded and designed for conducting quantitative policy … analysis of macroeconomic interdependence across regions belonging to the euro area and between euro area regions and the world …