Macro-Financial Stability Under Emu
36 Pages Posted: 5 Nov 2020
Date Written: February, 2016
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: macroeconomic stabilisation, financial stability, international capital flows, inflation, exchange rate
JEL Classification: E52, E65, G28
Suggested Citation: Suggested Citation