A Global Projection Model for Euro Area Large Economies

The GPM project is designed to improve the toolkit for studying both own-country and cross-country linkages. This paper creates a special version of GPM that includes the four largest Euro Area (EA) countries. The EA countries are more vulnerable to domestic and external demand shocks because adjust...

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Hauptverfasser: Jakab, Zoltan, Lukyantsau, Pavel, Wang, Shengzu
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creator Jakab, Zoltan
Lukyantsau, Pavel
Wang, Shengzu
description The GPM project is designed to improve the toolkit for studying both own-country and cross-country linkages. This paper creates a special version of GPM that includes the four largest Euro Area (EA) countries. The EA countries are more vulnerable to domestic and external demand shocks because adjustments in the real exchange rate between EA countries occur more gradually through inflation differentials. Spillovers from tight credit conditions in each EA country are limited by direct trade channels and small confidence spillovers, but we also consider scenarios where banks in all EU countries tighten credit conditions simultaneously.
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subjects Econometric models
Economic development
Euro area
European Union countries
Fiscal policy
International economic relations
International Monetary Fund
title A Global Projection Model for Euro Area Large Economies
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