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RESEARCH PRODUCT

Moving closer? Comparing regional adjustments to shocks in EMU and the United States

Pietro PizzutoPrakash LounganiDavide Furceri

subject

Flexibility (engineering)Economics and EconometricsLabor mobility2019-20 coronavirus outbreak050208 financeRisk-sharingEuroCurrency UnionsSevere acute respiratory syndrome coronavirus 2 (SARS-CoV-2)media_common.quotation_subject05 social sciencesLabor demandSettore SECS-P/02 Politica EconomicaMonetary economicsExchange-rate flexibilityFull sampleArticleRegional adjustments0502 economics and businessUnemploymentEconomics050207 economicsFinancemedia_common

description

Highlights • Interstate migration is the main adjustment channel to labor demand shocks for the US. • EMU countries adjust through changes in labor force participation and unemployment. • Price flexibility is more important as a shock absorber for EMU. • Risk-sharing mechanisms have been more effective in the US than in the EMU. • The strength of these channels has increased for EMU ad declined for the United States.

yearjournalcountryeditionlanguage
2020-01-23Journal of International Money and Finance
https://doi.org/10.1016/j.jimonfin.2020.102282