FEBRUARY 14, 2023
Following the Covid-19 epidemic, the European economy has once more been shaken by the arrival of war in Ukraine. How can these ‘asymmetric’ shocks, affecting member states in different ways, be managed? Economists Gilles Dufrénot, Jean-Baptiste Gossé et Caroline Clerc argue the case for financial integration. Financial markets can reduce the adverse effects of financial crises by sharing the risk across European economies.
Dufrénot G., Gossé J.-B., Clerc C., 2021, “Risk Sharing in Europe: New Empirical Evidence on the Capital Markets Channel”, Applied Economics, 53 (2), 262–76.
