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Macro-Financial Stability Under EMU

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  • Lane, Philip R.

Abstract

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. JEL Classification: E52, E65, G28

Suggested Citation

  • Lane, Philip R., 2016. "Macro-Financial Stability Under EMU," ESRB Working Paper Series 1, European Systemic Risk Board.
  • Handle: RePEc:srk:srkwps:20161
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    References listed on IDEAS

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    8. Philip R. Lane, 2013. "External imbalances and macroeconomic policy," New Zealand Economic Papers, Taylor & Francis Journals, vol. 47(1), pages 53-70, April.
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    10. Philip R. Lane & Gian Maria Milesi-Ferretti, 2015. "Global Imbalances and External Adjustment After the Crisis," Central Banking, Analysis, and Economic Policies Book Series, in: Claudio Raddatz & Diego Saravia & Jaume Ventura (ed.),Global Liquidity, Spillovers to Emerging Markets and Policy Responses, edition 1, volume 20, chapter 4, pages 105-142, Central Bank of Chile.
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    12. Philip R. Lane & Barbara Pels, 2012. "Current Account Imbalances in Europe," The Institute for International Integration Studies Discussion Paper Series iiisdp397, IIIS.
    13. Christina D. Romer & David H. Romer, 2015. "New Evidence on the Impact of Financial Crises in Advanced Countries," NBER Working Papers 21021, National Bureau of Economic Research, Inc.
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    17. Gabriel Fagan & Paul McNelis, 2014. "TARGET Balances and Macroeconomic Adjustment to Sudden Stops in the Euro Area," The Institute for International Integration Studies Discussion Paper Series iiisdp465, IIIS, revised Dec 2014.
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    Cited by:

    1. Philip R. Lane, 2019. "Macrofinancial Stability and the Euro," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 67(3), pages 424-442, September.

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    More about this item

    Keywords

    exchange rate; financial stability; inflation; international capital flows; macroeconomic stabilisation;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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