MONETARY UNION ACCESSION AND THE SEVERITY OF POTENTIAL ASYMMETRIC SHOCKS THE CASE OF LITHUANIA AND POLAND

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Main Author: M.A. Radosfaw Kurach
Format: Artículo científico
Language:en
Published: Vilniaus Universitetas 2008
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author M.A. Radosfaw Kurach
author_facet M.A. Radosfaw Kurach
contents MONETARY UNION ACCESSION AND THE SEVERITY OF POTENTIAL ASYMMETRIC SHOCKS THE CASE OF LITHUANIA AND POLAND M.A. Radosfaw Kurach Jerzy Stelmach Economía y Finanzas currency area Monetary union asymmetric shocks Monetary union accession generates benefits and costs for the entering countries. According to the seminal paper by Mundell (1961), the possible costs are usually associated with the asymmetric shocks that might take place. Under the currency union regime, these asymmetric shocks can be no longer neutralized by the country-specific monetary policy tools, hence the flexibility of the economy is desirable. In this article, we employ the measure of business cycles correlation proposed by Artis and Zhang (1995) as well as labor market statistics to examine how easy the economies of Lithuania and Poland can adjust to asymmetric shocks in comparison to some other EU countries. Discussing the empirical results, we propose recommendations for economic policy that might help to fulfil the conditions of the Optimum Currency Area. 2008 artículo científico 2424-6166 https://www.redalyc.org/articulo.oa?id=692273762001 en http://www.redalyc.org/revista.oa?id=6922 Ekonomika application/pdf Vilniaus Universitetas Ekonomika (Lituania) Vol.83
format Artículo científico
id redalyc_692273762001
institution Redalyc
language en
publishDate 2008
publisher Vilniaus Universitetas
spellingShingle MONETARY UNION ACCESSION AND THE SEVERITY OF POTENTIAL ASYMMETRIC SHOCKS THE CASE OF LITHUANIA AND POLAND
M.A. Radosfaw Kurach
Economía y Finanzas
currency area
Monetary union
asymmetric shocks
MONETARY UNION ACCESSION AND THE SEVERITY OF POTENTIAL ASYMMETRIC SHOCKS THE CASE OF LITHUANIA AND POLAND M.A. Radosfaw Kurach Jerzy Stelmach Economía y Finanzas currency area Monetary union asymmetric shocks Monetary union accession generates benefits and costs for the entering countries. According to the seminal paper by Mundell (1961), the possible costs are usually associated with the asymmetric shocks that might take place. Under the currency union regime, these asymmetric shocks can be no longer neutralized by the country-specific monetary policy tools, hence the flexibility of the economy is desirable. In this article, we employ the measure of business cycles correlation proposed by Artis and Zhang (1995) as well as labor market statistics to examine how easy the economies of Lithuania and Poland can adjust to asymmetric shocks in comparison to some other EU countries. Discussing the empirical results, we propose recommendations for economic policy that might help to fulfil the conditions of the Optimum Currency Area. 2008 artículo científico 2424-6166 https://www.redalyc.org/articulo.oa?id=692273762001 en http://www.redalyc.org/revista.oa?id=6922 Ekonomika application/pdf Vilniaus Universitetas Ekonomika (Lituania) Vol.83
title MONETARY UNION ACCESSION AND THE SEVERITY OF POTENTIAL ASYMMETRIC SHOCKS THE CASE OF LITHUANIA AND POLAND
topic Economía y Finanzas
currency area
Monetary union
asymmetric shocks
url https://www.redalyc.org/articulo.oa?id=692273762001