Procrastinating on May 4, 2017

Should-Read: Tamim Bayoumi and Barry Eichengreen: Shocking Aspects of European Monetary Unification: "Data on output and prices for 11 EC member nations... http://www.nber.org/papers/w3949

...aggregate supply and demand disturbances... a VAR decomposition.... Underlying shocks are significantly more idiosyncratic across EC countries than across US regions, which may indicate that the EC will find it more difficult to operate a monetary union. However a core... Germany and her immediate neighbors... shocks of similar magnitude and cohesion as the US regions. EC countries also exhibit a slower response to aggregate shocks than US regions, presumably reflecting lower factor mobility...

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