2 documents found, page 1 of 1
A small open economy before and during the crisis: the importance of banks, ass...
Soares, Carla Sofia CaeiroIt is widely accepted that there are welfare bene ts from financial integration via risk sharing of idiosyncratic shocks. However, evidence suggests that aggregate shocks are preponderant in explaining business cycles, at least in the US and the euro area. This thesis discusses this idea, both theoretically and empirically, in the background of the euro area before and after the Great Recession. There are welfa...
Monetary policy in a currency union with heterogeneous countries
Soares, Carla Sofia CaeiroMestrado em Economia Monetária e Financeira; We build a two-country DSGE model for a currency union, with habit formation, product and labour differentiation and nominal rigidities. Monetary policy is defined by a rule that responds to the area's macro-variables averages weighted by each country's size. We intend to study the impact of different sources of heterogeneity between the countries (home bias in consu...