The paper presents a model-based assessment of fiscal multipliers operating in the euro area during the period 2011-2014. The assessment is conditional on two distinct reactions of the sovereign risk premium (either responding endogenously to fiscal shocks or being an exogenous process) and two...

This paper investigates and models the yield spreads of sovereign debt of Eurozone countries by means of macroeconomic fundamentals. In particular, this paper shows that the change in the volatility of terms-of-trade of trade outside the Eurozone was a factor in capturing a significant part of...