Discussion Paper

Do Economic Crises in Europe Affect the U.S.? Some Lessons from the Past Three Decades

Abstract: In this post we summarize the main results of our contribution to a recent e-book, “The Making of the European Monetary Union: 30 years since the ERM crisis,” on the economic and financial crises in Europe since 1992-93, and focus on the spillovers of those crises onto the United States and the global economy. We find that the answer to the question in the title of this post is a (moderate) yes.

Keywords: Cross-County; spillovers; Dynamic Stochastic General Equilibrium (DSGE) models; euro area; sovereign debt crises;

JEL Classification: F0; E2; E51; G01;

Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Liberty Street Economics

Publication Date: 2023-05-31

Number: 20230531