Moving closer? Comparing regional adjustments to shocks in EMU and the United States

Furceri, Davide; Loungani, Prakash; Pizzuto, Pietro

doi:10.1016/j.jimonfin.2020.102282

Cited by 10 publications

(5 citation statements)

References 39 publications

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“…These findings are related to those ofDao et al (2017), toHouse et al (2019), and to(Furceri et al 2020) who compare U.S. and European labor sensitivity to economic conditions.…”

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confidence: 56%

Risk Sharing in a Politically Divided Monetary Union

Parsley

Popper

2021

Open Econ Rev

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We document stark asynchronicity across U.S. states, particularly across groups of states whose populations have voted consistently Democrat or consistently Republican in national elections; and we show that the risk-sharing channels of these groups of states differ substantially. However, we find that these groups of states–even swing states, where the role of fiscal flows is small (on par with Europe’s)–do share risk. Indeed, we halve previous estimates of states’ residual risk by using new data to account for sharing risk through changes in population, prices, and durable goods consumption. These findings indicate that political differences alone do not themselves preclude macroeconomic risk sharing within a monetary union.

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“…These findings are related to those ofDao et al (2017), toHouse et al (2019), and to(Furceri et al 2020) who compare U.S. and European labor sensitivity to economic conditions.…”

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confidence: 56%

Risk Sharing in a Politically Divided Monetary Union

Parsley

Popper

2021

Open Econ Rev

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“…Calmfors (2001) finds that the EMU has reduced unemployment through labor market reforms. Recent studies have focused on real and financial synchronicity, such as employment Furceri et al (2020) and Bayoumi and Eichengreen (2020).…”

Section: Introductionmentioning

confidence: 99%

“…Recent studies have focused on real and financial synchronicity, such as employment Furceri et al. (2020) and Bayoumi and Eichengreen (2020).…”

Section: Introductionmentioning

confidence: 99%

Does membership of the EMU matter for economic and financial outcomes?

Ardakani,

Kishor,

Song

2024

Contemporary Economic Policy

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This study examines the effects of joining the European Monetary Union (EMU) using propensity score matching to address self‐selection bias. Findings indicate that EMU membership leads to reduced volatility in inflation, output growth, and bond yields. However, it also reveals fiscal deterioration in member states during the pre‐financial crisis period, even excluding Greece, Ireland, Portugal, and Spain. These countries experienced favorable bond market conditions pre‐crisis. The study underscores varying EMU effectiveness across different periods and countries, emphasizing the importance for policymakers to consider these variations when adopting EMU strategies.

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“…Furceri et al (2021) compare adjustment channels in the US and EMU. Their evidence suggests that labor mobility plays a key role in the US, but less so in EMU.…”

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confidence: 99%