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S. Destefanis, M. Fragetta, E. Gasteiger:
"Does One Size Fit All in the Euro Area? Some Counterfactual Evidence";
Bericht für Vienna University of Technology Working Papers in Economic Theory and Policy; 2019.

This paper examines whether Euro Area countries would have faced a more favorableinflation output variability tradeoff without the Euro. We provide evidence that this claimis true for the periods of the Great Recession and the European Sovereign Debt Crisis.For the Euro Area as a whole, the deterioration of the tradeoff becomes insignificant withDraghi´s`whatever it takes´announcement onwards. However, a more detailed analysisshows that the detrimental effect of the Euro is more severe and long-lasting for peripheralcountries, pointing to structural differences among Euro Area countries as a key elementof the detrimental effect of the Euro. We base our results on a novel empirical strategythat, consistently with monetary theory, models the joint determination of the variabilityof inflation and output conditional on structural supply shocks. Moreover, our findings arerobust to potential endogeneity concerns related to adoption of the Euro.

https://www.econ.tuwien.ac.at/wps/econ_wp_2019_05.pdf