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Shocks to New and Old Europe: How Symmetric?

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  • PETER MIKEK

Abstract

Strong symmetry of shocks allows for the formation of a monetary union with low costs due to losing monetary sovereignty. I employ vector autoregression to identify structural shocks and study their symmetry through time. I find that the underlying structural shocks have not changed significantly and remain rather asymmetric, particularly demand shocks.

Suggested Citation

  • Peter Mikek, 2009. "Shocks to New and Old Europe: How Symmetric?," Journal of Common Market Studies, Wiley Blackwell, vol. 47(4), pages 811-830, September.
    • Handle: RePEc:bla:jcmkts:v:47:y:2009:i:4:p:811-830
    DOI: 10.1111/j.1468-5965.2009.02006.x
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    Cited by:

    1. Mikek, Peter, 2009. "Does trade integration contribute to synchronization of shocks in Europe?," MPRA Paper 101413, University Library of Munich, Germany.
    2. Valerija Botric & Tanja Broz & Sasa Jaksic, 2019. "Business Cycle Synchronisation with the Euro Area Countries at Times of Crisis: Differences Between SEE and CEE Countries," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 17(2), pages 175-191.
    3. Naib ALAKBAROV & Utku UTKULU, 2020. "Asymmetries and Macroeconomic Shocks: The Pre-Crisis Period and Evidence for Europe," Sosyoekonomi Journal, Sosyoekonomi Society, issue 28(44).

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