Euro area remains the little brother in transatlantic relations
News - March 2020 - No. 4
The euro area economy and its financial sector remains disproportionately more vulnerable to shocks originating from the US than in reverse, as demonstrated in a brand-new international study with data spanning four decades. In an original empirical study, Eddie Gerba from Danmarks Nationalbank and Danilo Leiva-Leon from Banco de España have analysed and compared the interaction between the financial sector and the macroeconomy in the US and the euro area over the past four decades.