Central banks

This paper introduces the European Central Bank’s Multi Country model (ECB-MC), a coherent macroeconomic framework designed to support economic forecasting and policy analysis within the Eurosystem. The ECB-MC captures the economic dynamics of the five major economies in the euro area – Germany, France, Italy, Spain, and the Netherlands – which account for more than 80 percent of the euro area total GDP.

This article details a consultation to discontinue the collection and publication of statistical data via Form BN on the further sectoral breakdown of non-resident monetary financial institutions. It also outlines existing alternative sources of non-resident data available in Forms CC and CL which can be used to substitute Form BN data, albeit on a quarterly rather than monthly frequency.

Manuel González-Astudillo, Diego VilánA challenge for conducting monetary policy in a currency union is the diverse economic conditions among member states. Such disparities can drive natural interest rates apart, thereby undermining the stabilizing role of a unified monetary policy.

Jacob OrchardThis paper shows that adverse macroeconomic shocks systematically increase inflation for low-income households relative to high-income households. I document two key facts: (i) during every U.S. recession since 1959, aggregate spending shifts toward products disproportionately purchased by low-income households (necessities); and (ii) relative prices of necessities rise during recessions.