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.

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Year of publication:	2002
Authors:	Pierdzioch, Christian
Publisher:	Kiel : Kiel Institute for World Economics (IfW)
Subject:	Konjunkturzusammenhang \| Schock \| Volatilität \| Währungsunion \| Internationaler Finanzmarkt \| Marktintegration \| Offene Volkswirtschaft \| Makroökonomik \| Allgemeines Gleichgewicht \| Neue Makroökonomik offener Volkswirtschaften \| Open Economy Macroeconomics \| Monetary union \| Business cycles \| Financial markets

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Series:	Kiel Working Paper ; 1115
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	859776166 [GVK] hdl:10419/17784 [Handle] RePEc:zbw:ifwkwp:1115 [RePEc]
Classification:	F36 - Financial Aspects of Economic Integration ; F41 - Open Economy Macroeconomics ; F33 - International Monetary Arrangements and Institutions
Source:	EconStor

Persistent link: https://www.econbiz.de/10010260515