Has the Euro changed the Business Cycle?
Zeno Enders and
Gernot Müller
Authors registered in the RePEc Author Service: Philip Jung ()
Working Papers from Oesterreichische Nationalbank (Austrian Central Bank)
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.
Keywords: European business cycles; Euro; Optimum Currency Area; EMU; Monetary Policy; Exchange rate regime; Cross-country spillovers (search for similar items in EconPapers)
JEL-codes: E32 F41 F42 (search for similar items in EconPapers)
Pages: 49
Date: 2010-05-31
New Economics Papers: this item is included in nep-cba, nep-eec, nep-mac, nep-mon and nep-opm
References: Add references at CitEc
Citations: View citations in EconPapers (18)
Downloads: (external link)
https://www.oenb.at/dam/jcr:8a92a434-ad66-49cd-858 ... ers_tcm16-192502.pdf (application/pdf)
Related works:
Journal Article: Has the Euro changed the business cycle? (2013) 
Working Paper: Has the Euro changed the Business Cycle? (2012) 
Working Paper: Has the Euro changed the Business Cycle? (2009) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:onb:oenbwp:162
Ordering information: This working paper can be ordered from
Oesterreichische Nationalbank, Economic Studies Division, POB 61, A-1011 Vienna, Austria
The price is Free subject to availability.
Access Statistics for this paper
More papers in Working Papers from Oesterreichische Nationalbank (Austrian Central Bank) P.O. Box 61, A-1011 Vienna, Austria. Contact information at EDIRC.
Bibliographic data for series maintained by Markus Knell ().