Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/153278
Authors: 
Afonso, António
Furceri, Davide
Year of Publication: 
2007
Series/Report no.: 
ECB Working Paper 844
Abstract: 
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 well synchronized business cycles, for some of the other countries, business cycles are not yet well synchronized with the euro area’s business cycle, and risk-sharing mechanisms may not provide enough insurance against shocks.
Subjects: 
business cycle synchronization
EU
Insurance Mechanisms
Optimum Currency Areas
JEL: 
E32
E42
F41
F42
Document Type: 
Working Paper

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