DP10776 Macro-Financial Stability under EMU
|Author(s):||Philip R. Lane|
|Publication Date:||August 2015|
|Keyword(s):||EMU, financial stability, macroprudential|
|JEL(s):||E50, F30, F32|
|Programme Areas:||International Macroeconomics and Finance|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=10776|
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.