Business cycle synchronization and insurance mechanisms in the EU

No 844, Working Paper Series from European Central Bank

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. JEL Classification: E32, E42, F41, F42

Keywords: business cycle synchronization; EU; Insurance Mechanisms; Optimum Currency Areas (search for similar items in EconPapers)
Date: 2007-12
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Related works:
Working Paper: Business Cycle Synchronization and Insurance Mechanisms in the EU (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:2007844

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