search query: @journal_id 133 / total: 233
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| Author: | |
| Title: | The impact of shocks on the UK economy in and out of EMU |
| Journal: | Economic Outlook
2002 : JUL, VOL. 26:4, p. 10-22 |
| Index terms: | ECONOMICS UNITED KINGDOM EUROPEAN MONETARY SYSTEM |
| Language: | eng |
| Abstract: | Entry to EMU at an inappropriate exchange rate could trigger a full-blown business cycle in the UK. Once inside EMU, the UK's response to a number of different economic shocks would change -partly because of the fixed exchange rate, and partly because of the common monetary policy. In particular, when an asymmetric shock occurs - one that hits the UK harder than other Eurozone economies - the UK response is generally likely to be more pronounced inside EMU than outside. The authors find that that result still applies even in a reformed EMU - one in which the ECB and the labour market are reformed to bring them closer to the Anglo- Saxon model. |
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