Financial and monetary stability across Euro-zone and BRICS: An exogenous threshold VAR approach

摘要: Abstract By highlighting the asymmetries on transmission of a shock we examine relationship between financial stability and monetary in Euro-zone BRICS countries. Our goal is to define sound economic policy that will provide growth prospects for both regions through their trade cooperation. We derive an empirical international threshold VAR model which accounts presence different regimes stress produces generalized impulse responses. find zone better protected from exogenous inflation shocks but endogenous derives significant disturbance activities. In Eurozone have same short-term impact. also are transmitted one area another with effect, endogenously greater insistence clear Eurozone. confirm as well he robustness results, because choice non-linear responses meaningful since reject null equal IR (by SVAR) GIR E-TVAR).