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Financial asymmetries between Euro area and the United States: An International Political Economy Perspective

Author

Listed:
  • Audrey Allegret
  • Jean-Pierre Allegret

    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique)

  • Dalia Ibrahim

    (Banque de France - Banque de France - Banque de France)

Abstract

This paper assesses financial asymmetries between the Euro area and the United Stats using a financial accelerator framework. We estimate a GVAR model from 1995Q1 to 2016Q4 and find (i) that American financial shocks have a global influence whereas those of the Euro area are regional and (ii) that American financial shocks have larger effects in size than those of the Euro area. We develop an International Political Economy framework based on the concept of asymmetrical interdependence to point out policy suggestions whose the main objective is to increase the autonomy of the Euro area.

Suggested Citation

  • Audrey Allegret & Jean-Pierre Allegret & Dalia Ibrahim, 2023. "Financial asymmetries between Euro area and the United States: An International Political Economy Perspective," Post-Print hal-04036046, HAL.
    • Handle: RePEc:hal:journl:hal-04036046
    DOI: 10.1016/j.jpolmod.2023.03.003
    Note: View the original document on HAL open archive server: https://hal.science/hal-04036046
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    References listed on IDEAS

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    Keywords

    Complex Interdependence; Financial Accelerator; United States; Euro area; GVAR;
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