How Symmetric are the Shocks and the Shock Adjustment Dynamics between the Euro Area and Central and Eastern European Countries?

By M. Frenkel, Christiane Nickel. Social Science Research Network, 2002

140 citations recorded by the source corpus.

In this paper, we use a structural vector autoregression model to identify and compare demand and supply shocks between euro area countries and central and eastern European countries (CEECs). The shocks and the shock adjustment dynamics of these countries are also compared to EU countries that currently do not participate in the EMU. Focusing on the period 1993-2001, we find that there are still differences in the shocks and in the adjustment process to shocks between the euro area and the CEECs. However, several individual CEECs exhibit shocks and shock adjustment processes that are fairly similar to some euro area countries.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/d3d07d079f11f4005d537ece9456804f8207f41b

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Citations in the corpus

A meta-analysis of business cycle correlation between the euro area and CEECs: What do we know - and who cares? (2004, background): “Frenkel and Nickel (2002) use a longer sample, although for a smaller set of comparative countries.”
Business Cycle Synchronization in the Enlarged EU (2008, unknown): “(8)See Babetski, Boone and Maurel (2002), Frenkel and Nickel (2002), Fridmuc and Korhonen (2001), Frenkel et al. (1999), and Csermely and Csajbók eds. (2002). 9 See, for instance, Faust and Leeper (1997) and Cooley and Dwyer (1998).”
Are European business cycles close enough to be just one (2006, unknown): “Other authors like Babetski, Boone and Maurel (2002), and Frenkel and Nickel (2002) try to identify demand and supply shocks, with the identi…cation restrictions that this speci…c purpose implies.”
Fiscal Policies and Business Cycles in an Enlarged Euro Area (2008, unknown): “There is extensive literature discussing whether the expanded European Union constitutes an optimal currency area and, in particular, whether the business cycles across the member countries are converging; see, for example, Korhonen (2003), Frenkel and Nickel (2005) , and Fidrmuc and Korhonen (2006”
Monetary policy shocks in the new EU members: a VAR approach (2007, result): “A similar conclusion is reached in Frenkel and Nickel (2002), who analyse the differences in the effects of demand and supply shocks on EMU and new EU members.”