In this paper, we develop a dynamic stochastic general equilibrium (DSGE) model for an
open economy, and estimate it on Euro area data using Bayesian estimation techniques …

This paper tests a credit channel of monetary policy (especially a bank-lending channel) in
the housing market. We argue that the relevance of the credit channel depends on the …

This paper surveys the literature on the linkages between asset prices and macroeconomic
outcomes. It focuses on three major questions. First, what are the basic theoretical linkages …

We show that a fiscal expansion by the core economies of the euro area would have a large
and positive impact on periphery GDP assuming that policy rates remain low for a prolonged …

Proper conduct of monetary policy requires understanding the monetary transmission
mechanism, to monitor the economy, make decisions on the stance of policy, and explain …

This paper provides a systematic empirical analysis of the role of the housing market in the
macroeconomy in the US and the euro area. First, it establishes some stylised facts …

We document that the durable goods sector is much more interest-sensitive than the
nondurables sector, and then investigate the implications of these sectoral differences for …

We build a stylised 12-country model of the euro area and use it to analyse how differences
in national inflation and growth rates arise within the European Economic and Monetary …

This paper addresses the pass-through from market interest rates to retail bank interest
rates. The paper advocates a heterogeneous approach and applies it to the Belgian banking …

Yes, a dual mandate makes a lot of sense. This article studies how to design simple loss
functions for central banks, as parsimonious approximations to social welfare. We show …