Growing too fast? Shock asymmetries and the Euro Area enlargement
Résumé
This study gives an empirical assessment of the EMU enlargement. Following Bayoumi and
Eichengreen (1993), asymmetries are measured by correlations among the structural shocks from a VAR. We address two questions: what is the impact of new adhesions on the stability of the enlarged union? Is the measurement of asymmetries robust to identification of shocks? Using monthly data over 1995-2007, Slovenia and Greece stay at the periphery of the EMU like Estonia and Lithuania, despite their adhesion. While currency unions’ endogeneity is supported by the greater symmetry between responses to shocks, using long-run restrictions puts the overall assessment into question.
Origine : Fichiers produits par l'(les) auteur(s)
Loading...