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Economic Integration, Asymmetries and the Desirability of a Monetary Union

Economic Integration, Asymmetries and the Desirability of a Monetary Union

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Symmetry of shocks across countries is often considered as a necessary condition for a monetary union. We show that the measure of shocks symmetry does not reveal a deep parameter, and depends on economic integration. The more integrated economies are, the more asymmetric are GDPs for a given set of sectoral shocks. (JEL Classifications: E3, F15)

Ⅰ. Introduction

Ⅱ. The Model

Ⅲ. Results

Ⅳ. Conclusion

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