Households saving and financial spillovers in the Euro area
| Autor: | Florence Huart, Cristina Badarau, Ibrahima Sangaré |
|---|---|
| Přispěvatelé: | Laboratoire d'analyse et de recherche en économie et finance internationales (Larefi), Université de Bordeaux (UB) |
| Jazyk: | angličtina |
| Rok vydání: | 2021 |
| Předmět: |
Economics and Econometrics
Government Bond 05 social sciences Financial market Financial integration Monetary economics [SHS.ECO]Humanities and Social Sciences/Economics and Finance Preference Shock (economics) Spillover effect 8. Economic growth 0502 economics and business Dynamic stochastic general equilibrium Economics 050207 economics 050205 econometrics |
| Zdroj: | Bulletin of Economic Research Bulletin of Economic Research, Wiley, 2021, ⟨10.1111/boer.12275⟩ |
| ISSN: | 0307-3378 1467-8586 |
| DOI: | 10.1111/boer.12275⟩ |
| Popis: | The aim of this paper is to study the consequences of a preference shock resulting in an increase in household savings in one country of a monetary union such as the Euro area. We study the macroeconomic effects of such a shock by developing a dynamic stochastic general equilibrium model which describes a two-country monetary union open to the rest of the world. A key feature of the model deals with one specific dimension of financial integration, namely cross-border bank holdings of government bonds. We show that a negative preference shock in one country can have salient spillover effects on the rest of the union. Spillovers come not only from the financial markets opening-up, but also from the intensity of intra-union trade, and the response of macroeconomic (monetary and fiscal) policies. © 2021 Board of Trustees of the Bulletin of Economic Research and John Wiley & Sons Ltd |
| Databáze: | OpenAIRE |
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