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As elsewhere in the world, in the Western Balkans the COVID-19 pandemic has plunged countries into deep recession. Because of the recession, labor market conditions have taken a turn for the worse and welfare improvements have been interrupted, although government response measures cushioned the...
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We study the macroeconomic consequences of financial shocks and increase in economic risk using a quantile vector … risk, but have limited impact on upside potential. The impact of financial shocks is explained away after controlling for … economic risk (measured by the interquantile range). The effects are economically relevant. Bad economic environment …
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