This paper presents the European Commission's Global Multi-country model (the GM model). The GM model is an estimated multi-country DSGE model that can be used for spillover analysis, forecasting and medium term projections. Its development is jointly performed by the Joint Research Centre and...

This paper argues that a central bank can increase macroeconomic stability by reacting explicitly to stock prices and therefore rationalizes the observed empirical evidence of the "Fed put". Waves of optimism/ pessimism, unrelated to fundamental developments in the economy affect stock prices...

This paper argues that the price-dividend ratio variability is explained in a large proportion by shocks affecting the subjective distribution of capital gain expectations: sentimental discount rate shocks affecting average beliefs explain at least 30\% and disagreement shocks up to 20\% of the...