@techreport{eff46c28ec054d9e9b5ca1f8eca4364a,
title = "On the impact of the global financial crisis on the euro area",
abstract = "This paper analyses the impact of the Global Financial Crisis on the Euro area utilizing a simple dynamic macroeconomic model with interaction between monetary policy and fiscal policy. The model consists of an IS curve, a Phillips curve, a term structure relation, a debt accumulation equation and a Taylor monetary policy rule supplemented with a Zero Lower Bound, and a fiscal policy rule. The model is alibrated/estimated for EU-16 countries for the period 1980Q1-2009Q4. The impact of the Global Financial Crisis is studied by means of impulse responses following a combined, prolonged aggregate demand and public debt shock. The simulation mimicking the GFC turns out to work fairly well. However, the required size of the shock is quite large.",
keywords = "New Neoclassical Synthesis model, Zero Lower Bound, fiscal policy, monetary policy, euro area, Global Financial Crisis",
author = "Xiaoli He and Jan Jacobs and Gerard Kuper and Jenny Ligthart",
note = "Relation: http://www.rug.nl/ Rights: University of Groningen",
year = "2013",
language = "English",
volume = "13011-EEF",
series = "SOM Research Reports",
publisher = "University of Groningen, SOM research school",
type = "WorkingPaper",
institution = "University of Groningen, SOM research school",
}