We establish a two-sector model to simulate the potential effects of green fiscal policies and unconventional green monetary policy on the economy during a recovery or in case of a stimulus policy. We find that instruments such as carbon tax, implicit tax on brown loans, and subsidy for the...

We develop a two-country model with an explicitly microfounded interbank market and sovereign default risk. Calibrated to the core and the periphery of the Euro Area, the model gives rise to a debt-banks-credit loop that substantially amplifies the effects of financial shocks, especially for the...

We quantify the effects of competitive tax reforms within a two-country monetary union model with endogenous entry and endogenous tradability. As expected, their effects on out-put, consumption, hours worked and the terms of trade are positive. Extensive margins provide additional transmission...

We establish a two-sector model to simulate the potential effects of green fiscalpolicies and unconventional green monetary policy on the economy during a recoveryor in case of a stimulus policy. We find that instruments such as carbon tax, implicittax on brown loans, and subsidy for the...