Gilchrist, Simon; Hairault, Jean-Olivier; Kempf, Hubert - Federal Reserve Board (Board of Governors of the … - 2002
In this paper, we consider the effect of a monetary union in a model with a significant role for financial market … shocks to supply and demand. Within this framework, we study the likely costs and benefits of monetary union. We also … asymmetries in the financial contract widens the difference in cyclical behavior of national economies in a monetary union, but …