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policies under the assumption of asymmetric shocks hitting the core and the periphery. We find that macroprudential policy is … able to partly make up for the loss of independent monetary policy in the periphery. Moreover, LTV policy seems more …
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The euro area economies are bound together by monetary policy while still inhibiting many heterogeneities. Amongst them the share of homeowners. This paper presents a medium scale New Keynesian DSGE model of the euro area with an extensive housing market which explicitly models endogenous tenure...
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