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I revisit the potential costs and benefits for Sweden of joining the Economic and Monetary Union (EMU) of the European Union. I first show that the Swedish business cycle since the mid-1990s has been closely correlated with the Euro area economies, suggesting that common shocks have been an...
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autoregression extended to incorporate time-varying coefficients and stochastic volatility in the innovation variances. The reduced … and volatility of inflation and output but also suggest that these findings extend to money growth and asset prices. The … volatility …
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probability of macroeconomic catastrophes à la Barro (2006), and to the case of an uncertain trend or volatility of growth à la …
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