Bulletin n. 0/2004
December 2004
CONTENTS
  • Section A) The theory and practise of the federal states and multi-level systems of government
  • Section B) Global governance and international organizations
  • Section C) Regional integration processes
  • Section D) Federalism as a political idea
  • Pierdzioch Christian
    Financial market integration and business cycle volatility in a monetary union
    in Scottish Journal of Political Economy , Volume 51 (3) August ,  2004 ,  422 ss
    This paper uses a dynamic general equilibrium two-country sticky-price model to analyze the implications of financial market integration for the propagation of asymmetric productivity and government spending shocks in a monetary union. Financial market integration has a small effect on the propagation of these shocks if households can only trade in risk-free bonds. However, financial market integration has a more substantial effect on the propagation of these shocks in a monetary union with a complete market for state-contingent claims. This result indicates that it may be important to account for threshold effects in empirical analyses of the impact of financial market integration on business cycle volatility in a monetary union.
    ©2001 - 2020 - Centro Studi sul Federalismo - P. IVA 94067130016