A Transfer Mechanism for a Monetary Union

  • Simon Voigts
  • Published 2012

Abstract

We show in a dynamic stochastic general equilibrium framework that the introduction of a common currency by a group of countries with only partially integrated goods markets, incomplete …nancial markets and no labor migration across member states, signi…cantly increases volatility of consumption and employment in the face of asymmetric shocks. We propose a… (More)

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