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- W3123906403 abstract "In this paper we analyze European business cycles before and under EMU. Across the two periods we find 1) a significant decline in real exchange rate volatility, 2) significant changes in cross-country correlations, and 3) the volatility of macroeconomic fundamentals largely unchanged. We develop a two-country business cycle model and show that the calibrated model is able to replicate key features of the data prior to and under EMU.We find that the euro has a strong bearing on the transmission mechanism as cross-country spillovers increase substantially under EMU. As a result, foreign shocks become more and domestic shocks less important in accounting for the (unchanged) volatility of macroeconomic fundamentals." @default.
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- W3123906403 date "2009-06-01" @default.
- W3123906403 modified "2023-09-27" @default.
- W3123906403 title "Has the Euro changed the Business Cycle" @default.
- W3123906403 hasPublicationYear "2009" @default.
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