We study the joint dynamics of foreign capital flows and real activity during the recent boom-bust cycle of the Spanish economy, using a three-country New Keynesian model with creditconstrained households and firms, a construction sector and a government. We estimate the model using...

Special topic: Using fat survey data to nowcast euro area GDP growth. After losses in 2018-Q1 and a broad sideways movement in Q2, the euro-area (EA) and EU Economic Sentiment Indicators (ESI) posted moderate decreases of 0.9 (EU) and 1.4 (EA) points in the third quarter. In both cases, the...