This paper examines the link between interest rates and expenditures, known as the IS-curve. Specifically, we analyse whether the reaction of spending behaviour to monetary policy changes is different in a low compared to a normal interest rate environment. We estimate the nonlinear IS-curve for...

Does financial development increase income inequality? Ambiguous answers to this question may be due to over-aggregation of ‘financial development'. In a sample of 40 developed economies over 1990-2013, we study the effects on income inequality of different components of financial development....

This paper investigates how the monetary policy transmission channels change once the economy is in a low interest rate environment. We estimate a nonlinear model for the euro area and its five largest countries over the period 1999q2-2019q1 and allow for the effects of monetary policy shocks to...