A Global Projection Model for Euro Area Large Economies

Author/Editor:

Zoltan Jakab ; Pavel Lukyantsau ; Shengzu Wang

Publication Date:

March 2, 2015

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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.

Series:

Working Paper No. 15/50

Subject:

English

Publication Date:

March 2, 2015

ISBN/ISSN:

9781498399609/1018-5941

Stock No:

WPIEA2015050

Format:

Paper

Pages:

31

Please address any questions about this title to publications@imf.org