@techreport{Enders2009euro,
abstract = {In this paper we analyze European business cycles before and under EMU. Across the two periods we find 1) a significant decline in real exchange rate volatility, 2) significant changes in cross-country correlations, and 3) the volatility of macroeconomic fundamentals largely unchanged. We develop a two-country business cycle model and show that the calibrated model is able to replicate key features of the data prior to and under EMU. We find that the euro has a strong bearing on the transmission mechanism as cross-country spillovers increase substantially under EMU. As a result, foreign shocks become more and domestic shocks less important in accounting for the (unchanged) volatility of macroeconomic fundamentals.},
address = {Bonn},
author = {Zeno Enders and Philip Jung and Gernot J. M\"{u}ller},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {F41; F42; E32; 330; European business cycles; Euro; Optimum Currency Area; EMU; Monetary Policy; Exchange rate regime; Cross-country spillovers; Konjunktur; Volatilit\"{a}t; Europ\"{a}ische Wirtschafts- und W\"{a}hrungsunion; Konjunkturzusammenhang; Schock; Spillover-Effekt; EU-Staaten},
language = {eng},
number = {2009,6},
publisher = {Graduate School of Economics},
title = {Has the euro changed the business cycle?},
type = {Bonn econ discussion papers},
url = {http://hdl.handle.net/10419/37040},
year = {2009}
}
