Risks to financial stability in the euro area appear to be contained for the time being, but could be substantial in the longer run. The European financ

We assess empirically whether monetary policy announcements impact firm expectations. Two features of our data set are key. First, we rely on a survey o

Against the backdrop of a trend towards a cashless society and the emergence of private electronic monies, the paper discusses properties of digital cur

We develop an empirical model of heterogeneous agents to study the dynamics of theEuropean sovereign bonds market. Agents make use of different informat

We study the impact of monetary conditions on the supply of mortgage credit by banks to households. Using comprehensive credit register data from Hungary, we first establish a “bank-lending-to-households” channel by showing that monetary conditions...

The paper re‐examines the real effects of credible disinflation in the presence of real wage rigidities and non‐linear dynamics. A credible, gradual

We analyze the implications of trend growth for optimal monetary policy in the presence of search and matching unemployment. We show that trend growth inter- acts importantly with the inefficiencies stemming from the labor market. Higher trend growth...