This paper studies the effects of the European monetary unification on the volatility of the extensive margin of trade. First, we highlight empirical novel facts about the effects of monetary unification. We build country-level measures of the extensive margin of intra-EMU exports and describe...

[eng] This article examines how monetary policy should be conducted in an open economy when its influence on the extensive margin of trade is taken into account. In a two-country model, we show that – contrary to the results obtained by Bilbiie et alii (2007 ) – the optimal monetary policy...

Using a two?country DGSE combining nominal rigidities and financial frictions, we show that the persistence of output and inflation asymmetries observed since 1999 in an increasingly integrated EMU is not necessarily puzzling. Only the integration of intermediate goods markets unambiguously...