A Global Projection Model for Euro Area Large Economies
Electronic Access:
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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. 2015/050
Subject:
Bank credit Exchange rate adjustments Financial services Foreign exchange Inflation Money Prices Real exchange rates Real interest rates
English
Publication Date:
March 2, 2015
ISBN/ISSN:
9781498399609/1018-5941
Stock No:
WPIEA2015050
Pages:
31
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