The design of the euro area Quantitative Easing (QE) programme raises the question of whether insufficient liquidity in the bond markets will reduce the impact of the programme and lead to market volatility. While estimates suggests that scarcity of around €102 billion may arise over the life...

As more central banks across Central and Eastern Europe (CEE) move towards inflation control - either in the form of direct inflation targeting or indirectly through informal targets - good knowledge of transmission mechanism in the economy becomes crucial for implementing good policies. So far...

The goal of this report is to analyze nominal rigidities in the Euro area and evaluate their importance for the functioning of markets. Under flexible exchange rates the adjustment to economic shocks that have different effects across countries can take place through changes in the nominal...