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Working papers

The Working Paper Series showcases research work being conducted at the Banque de France on the development of analytical tools for use in macroeconomic forecasting, monetary policy conduct and the safeguarding of financial stability. The papers do not necessarily reflect the position of the Banque de France or the Eurosystem.

January

Publication Working Paper Series no. 752:
Questioning the puzzle: Fiscal policy, exchange rate and inflation

The paper re-investigates the effects of government spending shocks on the real exchange rate and inflation. In contrast with some previous puzzling results, we find that an increase in government spending appreciates the real exchange rate and is...

By Ferrara Laurent, Metelli Luca, Natoli Filippo, Siena Daniele
  • Published on 01/24/2020
  • 21 pages
  • EN
  • PDF (2.38 MB)

January

Publication Working Paper Series no. 751:
Wealth effect on consumption during the sovereign debt crisis: Households heterogeneity in the Euro area

This paper studies the heterogeneity of the marginal propensity to consume out of wealth (MPC) both across and within countries. We estimate the MPC based on a cross-country harmonized household level dataset which combines surveys on wealth, income...

By Garbinti Bertrand, Lamarche Pierre, Lecanu Charlélie, Savignac Frédérique
  • Published on 01/23/2020
  • 71 pages
  • EN
  • PDF (3.1 MB)

January

Publication Working Paper Series no. 750:
Basic Model Elasticities of the Macroeconomic Model for France of the Banque de France (FR-BDF)

This paper presents a set of Basic Model Elasticities (BMEs) of the Banque de France's new macroeconomic model for France, FR-BDF. A detailed description of the model is provided in Lemoine et al (2019) and this "BMEs workbook" is...

By Aldama Pierre, Ouvrard Jean-François
  • Published on 01/21/2020
  • 46 pages
  • FR
  • PDF (2.91 MB)

January

Publication Working Paper Series no. 749:
Trade, Productivity and (Mis)allocation

We examine the gains from globalization in the presence of firm heterogeneity and potential resource misallocation. We show theoretically that without distortions, bilateral and export liberalizations increase aggregate welfare and productivity, while...

By Berthou Antoine, Chung John Jong Hyun, Manova Kalina, Sandoz-dit-Bragard Charlotte
  • Published on 01/17/2020
  • 60 pages
  • EN
  • PDF (2.7 MB)

January

Publication Working Paper Series no. 748:
A Plucking Model of Business Cycles

In standard models, economic activity fluctuates symmetrically around a ``natural rate'' and stabilization policies can dampen these fluctuations but do not affect the average level of activity. An alternative view–labeled the ``plucking...

By Dupraz Stéphane, Nakamura Emi, Steinsson Jón
  • Published on 01/16/2020
  • 61 pages
  • EN
  • PDF (3.28 MB)

January

Publication Working Paper Series no. 747:
Public Liquidity Demand and Central Bank Independence

This paper studies how private demand for public liquidity affects the independence of a central bank vis-à-vis the fiscal authority. Whereas supplying liquidity to the private sector creates degrees of freedom for fiscal and monetary authorities vis-à...

By Barthélemy Jean, Mengus Eric, Plantin Guillaume
  • Published on 01/13/2020
  • 46 pages
  • EN
  • PDF (2.02 MB)

January

Publication Working Paper Series no. 746:
Everyday Regular Prices

Using a novel dataset from a large supermarket retailer in a European country that never engages in temporary sales, we establish that prices are actually as sticky as regular prices. Circumventing the debate on whether sales have to be included or...

By Berardi Nicoletta, Ravenna Federico, Samano Mario
  • Published on 01/09/2020
  • 29 pages
  • EN
  • PDF (2.31 MB)