Financial Openness and Business Cycle Volatility
Jörg Döpke and
No 1121, Kiel Working Papers from Kiel Institute for the World Economy (IfW)
This paper discusses whether the integration of international financial markets affects business cycle fluctuations. In the framework of a new open economy macro-model, we show that the link between financial openness and business cycle volatility depends on the nature of the underlying shock. Empirical evidence supports this conclusion. Our results also show that the link between business cycle volatility and financial openness has not been stable over time.
Keywords: Open Economy Macroeconomics; Monetary union; Business cycles; Financial markets (search for similar items in EconPapers)
JEL-codes: F36 F33 F41 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (32) Track citations by RSS feed
Downloads: (external link)
Journal Article: Financial openness and business cycle volatility (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkwp:1121
Access Statistics for this paper
More papers in Kiel Working Papers from Kiel Institute for the World Economy (IfW) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().