We investigate how the 2014-2016 depreciation of the euro against the US dollar triggered a cascade effect on the European supply chains which reduced the current account imbalances among the EU member states. In particular, we analyze the specific case of Greece to verify whether the higher...

This paper tries to highlight some essential elements that emerge from Luigi Pasinetti's work. Much of the research project that Pasinetti developed, especially in the 1981 book, was already present in nuce in the 1974 collection of essays. Here the theory of effective demand is presented for...

The bilateral netting of mutual obligations is an institutional arrangement usually employed in payment systems to reduce settlement risks. In this paper we explore its advantages and pitfalls when applied to an inter-bank lending market, in which banks extend credit to - and borrow from - other...

The cross holding of interbank deposits represents an optimal ex-ante co-insurance arrangement whenever the uncertainty concerning banks' liquidity needs is idiosyncratic and imperfectly correlated. When a shock to aggregate liquidity demand occurs, however, such an arrangement could be...

Helicopter money has long been a thought experiment, impossible to implement in the real world. Today, digital technologies make it a realistic option for central banks. We study the effectiveness of helicopter money through the issuance of central bank digital currencies (CBDC) by means of a...

Helicopter money has long been a thought experiment, impossible to implement in the real world. Today, digital technologies make it a realistic option for central banks. We study the effectiveness of helicopter money through the issuance of central bank digital currencies (CBDC) by means of a...