Financial Openness and Business Cycle Volatility

Arbeitspapier

This paper discusses whether the integration of international financial markets affects business cycle fluctuations. In the framework of a new open economy macro-model, we show that the link between financial openness and business cycle volatility depends on the nature of the underlying shock. Empirical evidence supports this conclusion. Our results also show that the link between business cycle volatility and financial openness has not been stable over time.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Kiel Working Paper ; No. 1121

Classification and Topics

• Classification: Wirtschaft ; Financial Aspects of Economic Integration ; International Monetary Arrangements and Institutions ; Open Economy Macroeconomics
• Subject: Open Economy Macroeconomics ; Monetary union ; Business cycles ; Financial markets ; Konjunktur ; Volatilität ; Globalisierung ; Internationale Kapitalmobilität ; Internationaler Finanzmarkt ; Offene Volkswirtschaft ; Makroökonomik ; Allgemeines Gleichgewicht ; Neue Makroökonomik offener Volkswirtschaften ; Schätzung ; OECD-Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Pierdzioch, Christian ; Döpke, Jörg ; Buch, Claudia M.
• Event: Veröffentlichung
• (who): Kiel Institute for World Economics (IfW)
• (where): Kiel
• (when): 2002

Further information

• Handle: http://hdl.handle.net/10419/17783
• Last update: 10.03.2025, 11:45 AM CET