We study how shocks to corporate leverage alter the macroeconomic transmission of monetary policy. We identify leverage shocks as idiosyncratic firm-level disturbances that are aggregated up to a size-weighted country-level average to generate a Granular Instrumental Variable (Ga...
The euro area consists of those Member States (MS) of the European Union (EU) that have adopted the euro as their common currency and sole legal tender. The euro was introduced to world financial markets as an accounting currency on 1 January 1999. After a transitional period of ...
The euro area consists of those Member States (MS) of the European Union (EU) that have adopted the euro as their common currency and sole legal tender. The euro was introduced to world financial markets as an accounting currency on 1 January 1999. After a transitional period of ...
The Federal Reserve’s (Fed) monetary policy announcements have created massive spillovers to global financial markets. Based on daily data for the sample from 1999 to 2019, this study finds that the Fed’s monetary policy announcements created significant international spillovers ...
Under the stress test of the inflation process, the two central banks' stances across the Atlantic share similarities but show also significant differences. Similarities and differences are reflected also in inflation dynamics in the US and the euro area. Differences are main...
This paper compares the inflation dynamics and the monetary policy stance in the euro area and the United States. The paper also discusses the challenges that monetary authorities confront on the two sides of the Atlantic, also considering the uncertainties brought about by the o...
This study examines whether the level of environmental disclosure in banks’ financial reports matches less brown lending portfolios. Using granular credit register data and detailed information on firm-level greenhouse gas emission intensities, we find a negative relationship bet...
We empirically analyze the interaction of monetary policy with financial stability and the real economy in the euro area. For this, we apply a quantile vector autoregressive model and two alternative estimation approaches: simulation and local projections. Our specifications incl...
We study the heterogeneous impact of jointly identified monetary policy and global risk shocks on corporate funding costs. We disentangle these two shocks in a structural Bayesian Vector Autoregression framework and investigate their respective effects on funding costs of heterog...