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Financial and Fiscal Shocks in the Great Recession and Recovery of the Spanish Economy

Author

Listed:
  • Jose Emilio Bosca
  • Rafael Domenech
  • Javier Ferri
  • Rodolfo Mendez-Marcano
  • Juan F. Rubio-Ramirez

Abstract

In this paper we develop a new DSGE model for a small open economy in a currency union, estimated with Bayesian methods, which incorporates a banking and a housing supply sector, consumers and entrepreneurs who accumulate debt, a rich structure of scal variables and monopolistic competition in products and labor markets.

Suggested Citation

  • Jose Emilio Bosca & Rafael Domenech & Javier Ferri & Rodolfo Mendez-Marcano & Juan F. Rubio-Ramirez, 2018. "Financial and Fiscal Shocks in the Great Recession and Recovery of the Spanish Economy," Working Papers 18/08, BBVA Bank, Economic Research Department.
    • Handle: RePEc:bbv:wpaper:1808
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Ginters Bušs & Patrick Grüning, 2023. "Fiscal DSGE model for Latvia," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 23(1), pages 1-44.
    2. Laurentiu Guinea & Luis A. Puch & Jesús Ruiz, 2019. "News-driven housing booms: Spain vs. Germany," Documentos de Trabajo del ICAE 2019-32, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico.
    3. William A. Barnett & Unal Eryilmaz, 2023. "Monetary Policy and Determinacy: An Inquiry into Open Economy New Keynesian Macrodynamics," Open Economies Review, Springer, vol. 34(2), pages 217-253, April.
    4. Javier Ferri & Francisca Herranz-Baez, 2023. "Building on fiscal policy: government consumption and the residential sector. When helping hurts," Working Papers 2023-01, FEDEA.
    5. William A. Barnett & Unal Eryilmaz, 2022. "Monetary Policy and Determinacy: An Inquiry in Open Economy New Keynesian Framework," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 202203, University of Kansas, Department of Economics.
    6. repec:bic:journl:v:23:y:2023:i:1:p:2173915 is not listed on IDEAS
    7. Ferri, Javier & Herranz-Baez, Francisca, 2024. "Government expenditure and the housing puzzle: Unpacking mechanisms," Economic Modelling, Elsevier, vol. 140(C).
    8. José Emilio Boscá & Rafael Doménech & Javier Ferri & Juan F. Rubio-Ramírez, 2019. "Macroeconomic Effects of Taxes on Banking," Working Papers 19/05, BBVA Bank, Economic Research Department.
    9. de Blas, Beatriz & Malmierca, María, 2020. "Financial frictions and stabilization policies," Economic Modelling, Elsevier, vol. 89(C), pages 166-188.
    10. Martínez-Martin, Jaime & Morris, Richard & Onorante, Luca & Piersanti, Fabio M., 2019. "Merging structural and reduced-form models for forecasting: opening the DSGE-VAR box," Working Paper Series 2335, European Central Bank.
    11. Javier Andrés & José Emilio Boscá & Rafael Doménech & Javier Ferri, 2024. "Spain | The transition to net zero emissions: economic and well-being effects," Working Papers 24/01, BBVA Bank, Economic Research Department.
    12. José Emilio Boscá & Rafael Doménech & Javier Ferri & Juan Ramón García & Camilo Ulloa, 2020. "Spain | The Stabilizing Effects of Economic Policies in Times of COVID-19," Working Papers 20/16, BBVA Bank, Economic Research Department.
    13. Margarita Rubio, 2024. "Macroprudential policies and Brexit: A welfare analysis," Economic Inquiry, Western Economic Association International, vol. 62(3), pages 1246-1267, July.
    14. Javier Andrés & José E. Boscá & Javier Ferri & Cristina Fuentes‐Albero, 2022. "Households' Balance Sheets and the Effect of Fiscal Policy," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 54(4), pages 737-778, June.

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    Keywords

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    JEL classification:

    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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