01943cas a2200253 a 4500 AALejournalIMF017513 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475586220 1018-5941 BD-DhAAL BD-DhAAL Bayoumi, Tamim. Aftershocks of Monetary Unification : Hysteresis with a Financial Twist / Tamim Bayoumi, Barry Eichengreen. Washington, D.C. : International Monetary Fund, 2017. 1 online resource (26 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Once upon a time, in the 1990s, it was widely agreed that neither Europe nor the United States was an optimum currency area, although moderating this concern was the finding that it was possible to distinguish a regional core and periphery (Bayoumi and Eichengreen, 1993). Revisiting these issues, we find that the United States is remains closer to an optimum currency area than the Euro Area. More intriguingly, the Euro Area shows striking changes in correlations and responses which we interpret as reflecting hysteresis with a financial twist, in which the financial system causes aggregate supply and demand shocks to reinforce each other. An implication is that the Euro Area needs vigorous, coordinated regulation of its banking and financial systems by a single supervisor-that monetary union without banking union will not work. Mode of access: Internet Eichengreen, Barry. IMF Working Papers; Working Paper ; No. 2017/055 Full text available on IMF http://elibrary.imf.org/view/journals/001/2017/055/001.2017.issue-055-en.xml IMF e-Library