We investigate the impact of EMU on macroeconomic volatility. The volatilities of inflation and nominal interest rates … reasons unrelated to EMU (the “great moderationâ€), we focus on the volatilities of bilateral differences in growth rates … (or changes). Pairs of EMU countries have experienced the greatest fall in consumption volatility, followed by pairs in …

this increase is more pronounced among EU and EMU countries than among non-E(M)U industrialised countries. We also show … driven by better consumption smoothing through the accumulation or decumulation of foreign assets. This EMU effect on the … independent EMU-effect on the way in which risk is shared. While it is too early to evaluate these findings conclusively, we …