Essays in macroeconomics

Chapter 1 analyses the optimal policy-mix within a New Keynesian model extended with borrowing households subject to costly access to financial market. It shows that in absence coincidence between stabilization of the output gap and consumption inequalities, fiscal policy becomes a relevant part of the optimal policy mix. Chapter 2 studies the inflation differentials between Malta and the Euro Area using a DSGE model. It finds that most of the differentials results from cyclical factors, with foreign shocks being responsible for the bulk of the variations. Chapter 3 looks at the importance of the various transmission channels of the ECB monetary policy' spillover toward North European countries. Using the responses of individual countries variables provided by a factor model featuring regional factors, it provides evidence that spillovers transmit through real channel rather than financial ones.