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Shocks to New and Old Europe: How Symmetric?




Strong symmetry of shocks allows for the formation of a monetary union with low costs due to losing monetary sovereignty. I employ vector autoregression to identify structural shocks and study their symmetry through time. I find that the underlying structural shocks have not changed significantly and remain rather asymmetric, particularly demand shocks. Copyright (c) 2009 The Author(s). Journal compilation (c) 2009 Blackwell Publishing Ltd.

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  • Peter Mikek, 2009. "Shocks to New and Old Europe: How Symmetric?," Journal of Common Market Studies, Wiley Blackwell, vol. 47, pages 811-830, September.
  • Handle: RePEc:bla:jcmkts:v:47:y:2009:i::p:811-830

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