Fear of a two-speed monetary union: what does a basic correlation scatter plot tell us?

Jean-Sébastien Pentecôte ()

Post-Print from HAL

Abstract: This paper extends Bayoumi and Eichengreen's (1993) approach to better visualize how far a given country is from a monetary union. Useful information is extracted from the scatter plot of correlation coefficients between supply and demand shocks. Indexes of distance and relative strength of asymmetry are derived from two, linear and nonlinear, combinations of correlations. Using quarterly data on ten countries over 1979-2011, the newly proposed statistical tests are supportive of a two-speed European Monetary Union, despite less asymmetric supply and demand shocks since 1999.

Keywords: monetary union; euro; shock asymmetry; correlation box; distance (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

Published in Economics Bulletin, 2013, 33 (1), pp.289-299

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Fear of a two-speed monetary union: what does a basic correlation scatter plot tell us? (2013)
Working Paper: Fear of a two-speed monetary union: what does a basic correlation scatter plot tell us? (2013)
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:hal:journl:halshs-00801266

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().