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another, especially as labor markets remain largely rigid. Eurozone mechanisms may be unable to face demand disturbances under … the Eurozone institutional architecture, the erosion of fiscal policy and inability to successfully handle asymmetric … economic disturbances in the Eurozone can only be countered by asymmetric policy responses, corresponding to different …
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Recent studies find that short-term fluctuations in EMU have been symmetric. This finding leads to benign views on the functioning of EMU as an optimum currency area (OCA), that are difficult to reconcile with the sovereign debt crisis. We try to solve this puzzle by looking at medium-term...
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This work aims to assess whether the hypothesis of endogenous synchronisation of shocks is verified in the European Economic and Monetary Union (EMU). A state-space model, which yields time-varying coefficients, is estimated with structural demand and supply shocks to several European economies...
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