Passive Euro monetary policy leads to global economic uncertainty and fluctuations.
The study looked at how monetary policy affects the U.S. and Euro area economies using a complex economic model. They found that the global economic situation can be uncertain due to passive monetary policies in the Euro area. This uncertainty can lead to different economic outcomes compared to when the situation is more certain. Sunspot shocks have a bigger impact on the Euro area economy than on the U.S. economy.