Author : Zoltan Jakab
Release : 2015-03-02
Genre : Business & Economics
Kind : eBook
Book Rating : 606/5 ( reviews)
Book Synopsis A Global Projection Model for Euro Area Large Economies by : Zoltan Jakab
Download or read book A Global Projection Model for Euro Area Large Economies written by Zoltan Jakab. This book was released on 2015-03-02. Available in PDF, EPUB and Kindle. Book excerpt: 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.