This paper investigates the long-run nexus between wealth inequality and aggregate output using a DSGE model in which wealth inequality endogenously affects individual entrepreneurship incentives, thereby influencing aggregate output. Our model passes the indirect inference test against the UK...

India is among the largest and fastest-growing economies in the world. To continue its growth, energy is and will continue to be one of its most important considerations. With a population of over one billion, India is the third largest consumer of petroleum on the globe. To maintain this...

This paper investigates the long-run nexus between wealth inequality and aggregate output using a DSGE model in which wealth inequality endogenously affects individual entrepreneurship incentives, thereby influencing aggregate output. Our model passes the indirect inference test against the UK...

This note provides extensive evidence on the persistence properties of real GDP in 17 European countries and in the US over the period 1960-2023 using a fractional integration framework. The analysis suggests that in all cases shocks have permanent effects on the level of real GDP. This is...

This study examines the characteristics of Indonesia's scholarly output and its alignment with national development goals. This research focuses on three key questions: how Indonesia's research output can be categorized into driver, basic, specialized, and declining clusters; the extent to which...

This paper investigates the cyclicality of international reserves and their role in macroeconomic stabilization. We challenge two widely held assumptions: (1) central banks typically manage IR counter-cyclically—accumulating reserves during booms and drawing them down during downturns; and (2)...

This study has a twofold objective. The first one is an assessment of the efficiency of monetary and capital-based macroprudential policy, defined as imposing less interest costs to loan borrowers (nonfinancial corporations and households). The second objective of this paper is the assessment of...

We construct estimates of quarterly GDP for Ireland from 1950, linking to official data from 1995 onward, using a novel factor-augmented Chow-Lin interpolation. Compared to the only alternative series (OECD, 2025), our procedure exploits the variation in a large number of official quarterly...

We examine the impact of government size on economic fluctuations and the role of fiscal policy in promoting macroeconomic stability in the period 1980-2024. The results indicate that indirect taxes, capital taxes, and social security contributions (as a percentage of GDP) are associated with...

This study involves tasking ChatGPT with classifying an "activity sentiment score" based on PMI news releases. It explores the predictive power of this score for euro area GDP nowcasting. We find that the PMI text scores enhance GDP nowcasts beyond what is embedded in ECB/Eurosystem Staff...

We study the interconnection between the productivity and pricing effects of financial shocks. Combining administrative records on firm-level output prices and quantities with quasi-experimental variation in credit supply, we show that a tightening of credit conditions has a persistent, yet...

This paper explores the effects of monetary policy on economic growth, focusing on key economic indicators-namely, the exchange rate, interest rates, and the broad money supply (M3). To capture a comprehensive view of each country's economic landscape, additional variables such as inflation and...

We find that, while different models used to estimate the output gap in five major emerging economies show similar trends over time, they lead to different conclusions about how well the output gap can predict inflation. This suggests that the choice of model can significantly impact the...

This study constructs a theoretical framework for technological progress (TP) on firm output (FOP) and examines the nonlinear influence between them. First, the empirical findings indicate that TP has a "positive U-shaped" correlation with FOP. This impact is particularly pronounced among firms...

Germany is undergoing a major shift in fiscal policy. In response to recent crises and long-term structural challenges, the federal government has introduced a debt-financed spending package that marks a significant departure from past fiscal orthodoxy. This paper investigates the macroeconomic...

This paper describes the recent work to strengthen the nowcasting capacity at the Central Bank of Samoa (CBS). It compiles available high-frequency datasets such as tourism receipts, agriculture market survey, remittances, among others, to nowcast real GDP in Samoa. Nowcasting enables the...

In response to a request from Saint Lucia's Central Statistics Office (CSO), a technical assistance (TA) mission was conducted from September 2-13, 2024, to support the development of experimental expenditure-based GDP (GDP-E) estimates as a complementary product to the existing production-based...

The Bahamas is highly vulnerable to the effects of climate change, including gradual sea level rise, biodiversity loss, and intensifying hurricanes. Together, these challenges threaten to undermine the country's potential output over the long term by inflicting damages to physical assets and...

In this paper, we propose a component-based dynamic factor model for nowcasting GDP growth. We combine ideas from "bottom-up" approaches, which utilize the national income accounting identity through modelling and predicting sub-components of GDP, with a dynamic factor (DF) model, which is...

Measurement errors in macroeconomic aggregates such as GDP have been widely lamented, particularly in low-income contexts. This study investigates the reliability of one component of national accounts, agricultural sector output. Focusing first on the case of Mozambique, we use a series of 12...

The notion of the output gap is crucial in understanding underlying economic trends. The macroeconomic stabilization policy can only be effective for all sectors or regions of the economy if regional or sectoral output gaps are sufficiently coherent. This study proposes a new microeconometric...

This paper analyzes the macroeconomic evolution of the European Union member states that have adopted the Euro, compared to those that continue to use national currencies, with a specific focus on the Central and Eastern European countries during the period 2018-2024. Using a quantitative and...

This policy note analyses the impacts of climate change on a small and open economy, emphasizing its effect on monetary policy. We use a New-Keynesian model to evaluate short- and long-term effects of transition climate change shocks - a permanent and anticipated shock to total factor...

This study examines the interactions among the oil price, Government expenditure, money supply, real effective exchange rate, and Gross Domestic Product (GDP) across Malaysia's finance, retail and wholesale, manufacturing, agriculture and overall sectors by using a Structural Vector...

Prior studies assessing welfare across countries have utilised measures that combine country-level outcomes in income and life expectancy (or average lifespan). However, this perspective remains blind to the fact that two countries may have the same life expectancy or average income but very...

We examine how demographic factors influence potential output, focusing on how the age distribution of the working-age population and the old-age dependency ratio affect aggregate productivity. Following Feyrer (2007), we emphasize that the contribution to aggregate productivity varies by age...

We study optimal monetary policy in an analytically tractable New Key-nesian DSGE-model with an emission externality. Empirically, emissions are strongly pro-cyclical and output in the flexible price equilibrium overreacts to productivity shocks, relative to the efficient allocation. At the same...

This study aims to explore the relationship between macroeconomic factors and the decision to file an anti-dumping (AD) initiation, focusing on the post-WTO period from 1995 to 2022 for both reporting and targeted countries. We analyze the 20 most frequent users of the AD mechanism and the 20...

This study involves tasking ChatGPT with classifying an "activity sentiment score" based on PMI news releases. It explores the predictive power of this score for euro area GDP nowcasting. We find that the PMI text scores enhance GDP nowcasts beyond what is embedded in ECB/Eurosystem Staff...