Fear of a two-speed monetary union: what does a basic correlation scatter plot tell us?
I extend the Bayoumi-Eichengreen (1993) approach by extracting new information from a scatter plot of correlation coefficients between shocks in order to better visualize how far a given country is from a monetary union. Indexes of distance and relative strength can be derived from either a nonlinear or a linear combination of correlations in connexion with distinct welfare loss functions. Using quarterly data on ten countries over 1979:I-2011:IV, shocks have become more symmetric within, but also outside, the euro area. Despite less asymmetry in shock asymmetry since 1999, new statistical tests support the idea of a two-speed EMU.
|Date of creation:||Mar 2012|
|Contact details of provider:|| Postal: CREM (UMR CNRS 6211) – Faculty of Economics, 7 place Hoche, 35065 RENNES Cedex|
Phone: 02 23 23 35 47
Fax: (33) 2 23 23 35 99
Web page: https://crem-doc.univ-rennes1.fr/
More information through EDIRC
|Order Information:|| Postal: CREM (UMR CNRS 6211) - Faculty of Economics, 7 place Hoche, 35065 Rennes Cedex - France|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dellas, Harris & Tavlas, George S., 2009.
"An optimum-currency-area odyssey,"
Journal of International Money and Finance,
Elsevier, vol. 28(7), pages 1117-1137, November.
- Harris Dellas & George S.Tavlas, 2009. "An Optimum-Currency-Area Odyssey," Working Papers 102, Bank of Greece.
- Dellas, Harris & Tavlas, George, 2010. "An Optimum Currency Area Odyssey," CEPR Discussion Papers 7645, C.E.P.R. Discussion Papers.
- Blanchard, Olivier Jean & Quah, Danny, 1989. "The Dynamic Effects of Aggregate Demand and Supply Disturbances," American Economic Review, American Economic Association, vol. 79(4), pages 655-673, September.
- Olivier Jean Blanchard & Danny Quah, 1988. "The Dynamic Effects of Aggregate Demand and Supply Disturbance," Working papers 497, Massachusetts Institute of Technology (MIT), Department of Economics.
- Olivier Jean Blanchard & Danny Quah, 1988. "The Dynamic Effects of Aggregate Demand and Supply Disturbances," NBER Working Papers 2737, National Bureau of Economic Research, Inc.
- Lane, Philip R, 2000. " Asymmetric Shocks and Monetary Policy in a Currency Union," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(4), pages 585-604, December.
- Lane, P, 1999. "Asymmetric Shocks and Monetary Policy in a Currency Union," Trinity Economics Papers 994, Trinity College Dublin, Department of Economics.
- Nolan, Charles, 2002. "Monetary Stabilisation Policy in a Monetary Union: Some Simple Analytics," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(2), pages 196-215, May.
- Andrew Brigden & Charles Nolan, 1999. "Monetary stabilisation policy in a monetary union: some simple analytics," Bank of England working papers 102, Bank of England.
- Øistein RØisland & Ragnar Torvik, 2003. "Optimum Currency Areas Under Inflation Targeting," Open Economies Review, Springer, vol. 14(2), pages 99-118, April. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:tut:cremwp:201218. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CODA-POIREY Hélène)
If references are entirely missing, you can add them using this form.