scholarly journals Cash in Circulation and the Shadow Economy: An Empirical Investigation for Euro Area Countries and Beyond

2020 ◽  
Vol 7 (2) ◽  
Author(s):  
Franz Seitz ◽  
Hans-Eggert Reimers ◽  
Friedrich Schneider
Keyword(s):  
Euro Area ◽  
Empirical Investigation ◽  
Shadow Economy

MONETARY POLICY SWITCHING IN THE EURO AREA AND MULTIPLE STEADY STATES: AN EMPIRICAL INVESTIGATION

2016 ◽  
Vol 21 (5) ◽  
pp. 1175-1188 ◽  
Author(s):  
Gilles Dufrénot ◽  
Guillaume A. Khayat
Keyword(s):  
Steady State ◽  
Euro Area ◽  
European Central Bank ◽  
Empirical Investigation ◽  
Standard Assumption ◽  
Demand Shock ◽  
Liquidity Trap ◽  
European Central ◽  
Parameter Values ◽  
Policy Function

This paper investigates, in the case of the euro area, the standard assumption that the liquidity trap steady state, which arises from the existence of the zero lower bound on the nominal interest rate, is locally unstable. We show that the policy function of the European Central Bank (ECB) is described by a nonlinear Taylor rule. Then, using our estimations, we show that around the liquidity trap steady state the equilibrium is locally determinate for most plausible parameter values. Finally, we find that an inflation shock is more efficient than a demand shock to escape the liquidity trap steady state.

scholarly journals Payment Innovations, the Shadow Economy and Cash Demand of Households in Euro Area Countries

2020 ◽  
Author(s):  
Hans-Eggert Reimers ◽  
Friedrich G. Schneider ◽  
Franz Seitz
Keyword(s):  
Euro Area ◽  
Shadow Economy ◽  
Cash Demand
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