This paper reveals new facts about inflation expectations in the euro area. By employing local projection and least squares techniques, the following five facts are documented. First, individual inflation expectations overreact to individual news. Second, the cross-section average of individual ...

We study interest rates transmission to savings at low and negative rates. Exploiting cohorts of consumers from a data-rich multi-country survey, we show how the strength of interest rate transmission to savings varies with the level of nominal interest rates. This response is positive when inte...

This report analyses business investment in Slovenia and offers an explanation of why investment was hit more and longer after the global financial crisis relative to other European countries. Using macroeconomic data for all EU countries, Norway and Switzerland we find that Slovenian corporate ...

Assessing fiscal risks from climate change is a critical and challenging issue. In this paper, we analyse the fiscal implications of acute physical risks from climate change, as we aim to capture debt sustainability risks associated with extreme weather and climate events. This is done by provid...

This paper summarises the approach taken by the Commission during the Economic Adjustment Programmes to address reforms to Greece’s energy market. It will argue that it was necessary address the sector as part of the programme, and to make energy-related reforms part of the conditionality applie...

This paper summarises the approach taken by the European Commission during the Economic Adjustment Programmes (2010 to 2018) to address reforms to Greece’s public administration. It will argue that it was necessary to address this structural reform area as part of the programmes as well as post-...

The COVID-19 crisis was a major economic shock to both the euro area and the United States. The US experienced a larger impact on human health but suffered a smaller economic contraction. Both regions experienced a faster pace of the recovery than during the global financial crisis. In spite of ...

This paper assesses the implications of the large issuance of euro-denominated bonds under the NGEU and SURE instruments, as well as of other measures taken by the EU in response to the pandemic, for the global role of the euro. It focuses on the impact of the new facilities on the supply of saf...

This paper assesses corporate financial distress in terms of liquidity and risk of insolvency due to the COVID-19 pandemic. We develop a novel multivariate approach to obtain monthly data on sectoral turnover, exploiting real time data to capture the atypical character of industry-specific distu...

This paper explores the role of the euro in the Southern neighbourhood of the EU, notably in Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco and Tunisia. Our analysis is based on a survey conducted by the European Commission in 2021 on the use of the euro and other currencies in these co...