This paper takes a first step in analysing how a monetary union performs in the presence of labour market asymmetries. Differences in wage flexibility, market power and country sizes are allowed for in a setting with both country-specific and aggregate shocks. The implications of asymmetries for...

Throughout the history of the European Union quite a few cases of transformation of typical emigration countries into countries of both emigration and immigration have been noted. This regards Italy (end of 60s/beginning of 70s), Ireland (end of 80s/beginning of 90s), Greece (in the 80s) and...