The paper reviews the unemployment problem in Europe. It shows that while there is a good deal of heterogeneity in European unemployment experience, a 'European model' of high and persistent unemployment characterizes many of the core continental economies, in contrast to the low unemployment...

This paper presents evidence on the monetary transmission process in the euro area, based on macroeconomic data and on micro data on banks. According to the estimations of macro vector autoregression and macroeconometric models, a monetary policy tightening significantly reduces output...