Monetary-Financial Stability Under EMU
36 Pages Posted: 27 Aug 2015
Date Written: August 2015
This paper examines the cyclical behaviour of country-level macro-financial variables under EMU. Monetary union strengthened the covariation pattern between the output cycle and the financial cycle, while macro-financial policies at national and area-wide levels were insufficiently counter-cyclical during the 2003-2007 boom period. We critically examine the policy reform agenda required to improve macro-financial stability.
Keywords: EMU, financial stability, macroprudential
JEL Classification: E50, F30, F32
Suggested Citation: Suggested Citation