Arbeitspapier
Financial Market Integration and Business Cycle Volatility in a Monetary Union
This paper uses a dynamic general equilibrium two-country optimizing sticky-price model to analyze the consequences of international financial market integration for the propagation of asymmetric productivity shocks in a monetary union. The model implies that business cycle volatility is higher the more integrated the capital markets of the member countries of the monetary union are.
Schlagworte
- Finanzmärkte
- Konjunkturzyklen