Disentangling the Eurozone Crisis: Government Default and Bank Credit in a Business Cycle Model
A Kellogg Work-in-Progress Seminar with Visiting Fellow Maximilian Goedl.
Goedl builds a model of the euro based on countries featuring government default risk as well as financial shocks. The model is used to disentangle the structural determinants of output growth, bank lending, government debt, interest spreads, and other macroeconomic variables during the eurozone crisis. Moreover, the model permits an analysis of the quantitative effects of fiscal and macro-prudential policies, such as bank equity injections or fiscal consolidation plans.
Maximilian Goedl
Maximilian Goedl (PhD, University of Graz), a 2018-19 Kellogg Institute Visiting Fellow, is an economist whose research is at the intersection between macroeconomics and public finance, focusing on the interaction between government debt, financial markets, and the real economy...
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