In this paper we provide a positive exercise on past business-cycle correlations and risk sharing in the European Union, and on the ability of insurance mechanisms and fiscal policies to smooth income fluctuations. The results suggest in particular that while some of the new Member States have...

In this paper we provide a positive exercise on past business-cycle correlations and risk sharing in the European Union, and on the ability of insurance mechanisms and fiscal policies to smooth income fluctuations. The results suggest in particular that while some of the new Member States have...

This paper is concerned with the question whether, over the last two decades, the priority to maintain the credibility as inflation 'fighter' induced the Fed to conduct a monetary policy that can be considered asymmetric in nature. Considering that the longer-term bond interest rate is the most...