We examine the different effects of monetary policy actions and central bank communication on China's stock market bubbles with a Time-varying Parameter SVAR model. We find that with negative responses of fundamental component and positive responses of bubble component of asset prices, contractionary monetary policy induces the observed stock prices to rise during periods of large bubbles. By c...

I investigate the convergence of demand and supply shocks in new EU member countries to those of the EU. High synchronization of the shocks would indicate relatively low costs of joining a monetary union. Applying the Kalman filter to demand and supply shocks recovered from SVAR, I calculate time varying coefficients in regression of shocks in individual countries versus the EU. For most countr...