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This paper investigates the effect of shocks to the policy rate, to the central bank's inflation and output projections and to private output forecasts on the term structure of private inflation expectations, so as to uncover private agents' interpretation of signals about policy and the macroeconomic outlook. We aim to understand how they process(More)
This paper aims at investigating first the (possibly time-varying) empirical relationship between the level and conditional variances of price and financial stability, and second, the effects of macro and policy variables on this relationship in the United States and the Eurozone. Three empirical methods are used to examine the relevance of A.J. Schwartz's(More)
We make the case for investigating the gap between the potential and the actual level of production, and review contributions that point to the reduced power of standard policy instruments in presence of a prolonged gap. We also highlight di¢ culties in measuring where an economy stands relative to its potential. We review links between human capital(More)
This paper aims to quantify the link between financialisation and financial instability, controlling for the financial and macroeconomic environment. Our main identification assumption is to represent these two concepts as a system of simultaneous joint data generating processes whose error terms are correlated. Based on panel data for EU countries from(More)
The European consolidation process has raised a few questions. The most frequent one has been how large are the costs of consolidation and has the Eurozone fiscal stance improved or achieved debt sustainability? Second, do these costs and sustainability depend on the composition (tax vs. spending) of the consolidation process? Third, do risk premia matter?(More)
We use panel data methodology to capture cross-section and time-series dimensions of unemployment growth in OECD countries and their links with fiscal and monetary policies. We did test for the robustness of every explanatory variables according to Levine and Renelt (1992) methodology. The entire data set covers 6 areas: general economic structure;(More)