Discussion paper

DP10776 Macro-Financial Stability under EMU

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.


Lane, P (2015), ‘DP10776 Macro-Financial Stability under EMU‘, CEPR Discussion Paper No. 10776. CEPR Press, Paris & London. https://cepr.org/publications/dp10776