Households saving and financial spillovers in the Euro area
Cristina Badarau,
Florence Huart and
I. Sangaré
Post-Print from HAL
Abstract:
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
Date: 2021
References: Add references at CitEc
Citations:
Published in Bulletin of Economic Research, 2021, ⟨10.1111/boer.12275⟩
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Related works:
Journal Article: Households saving and financial spillovers in the Euro area (2021) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03407534
DOI: 10.1111/boer.12275
Access Statistics for this paper
More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD (hal@ccsd.cnrs.fr).