Question 1
In their paper on U.K. monetary policy and EMU entry, Kontolemis and Samiei
(2000) begin by observing the differences in the business cycles between the EU
economies and that of the UK. The cycles in the UK are different from the continent
because of "different policies or exogenous variables, different transmission mechanisms,
and different idiosyncratic shocks" (Kontolemis and Samiei 2000, p. 3). For example,
the UK business cycles tend to be a bit more volatile and long lasting in comparison to
the continent. …
