Lee, Jong-Wha; Shin, Kwanho - In: International Economic Journal 24 (2010) 1, pp. 1-23
on bilateral trade, output co-movement and risk sharing. The extent of risk sharing is measured by consumption co …-movement relative to output co-movement. We find that while currency union has the greatest effect, the peg regime also significantly … strengthens only consumption co-movement and possibly lowers output co-movement. We interpret these findings to indicate that …