Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
Shocks to capital utilization are introduced in a structural macroeconomic model with financial frictions. Estimates for the Euro Area and the United States show that these shocks were among the most important drivers of the output contraction during the Global Financial Crisis and the COVID-19 Crisis, while financial shocks were more relevant during the Global Financial Crisis. Thanks to the timely and strong intervention of the European Central Bank and the U.S. Federal Reserve, monetary policy shocks had a sizable positive contribution on output and inflation during, and in the aftermath of, the COVID-19 Crisis.