Hayo, Bernd; Niehof, Britta - 2014 - This version: October 27, 2014
economies in terms of both output and inflation. In the case of a monetary union, we find that stabilisation of output in the … country where the financial shock originates is no longer as easy and, in terms of prices, there is now deflation in the … country where the crisis originated and a positive inflation rate in the other country. …