EMU – What Role for European Central Bank in the asymmetric shocks?
EMU – What Role for European Central Bank in the asymmetric shocks?

Summary/Abstract: The consequences of exogenous shocks hitting either the supply or the demand side, some of them affecting European Monetary Union (EMU) area, are labeled “common” or “symmetric”, while the others - hitting only a part of countries - are labeled “idiosyncratic” or “asymmetric”.EU Member States agreed to share a common single currency. EMU was achieved in three stages through coordinating economic policy, achieving economic convergence, sharing a common currency –Euro.The first stage was achieved from 1 July 1990 to 31 December 1993 (exchange control abolished, capital movements liberalized, Maastricht Treaty convergence criteria), while the second was between 1994, January, 1 and 1998, December, 31 (establishment of European Monetary Institute, adoption SGP and ERM II), and finally, the third came into force from 1 January 1999 (ECB establishment for leading all monetary policies in the common monetary area, Euro adoption).

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