Business cycle synchronisation and currency unions: A review of the econometric evidence using meta-analysis

Nauro Campos, Jarko Fidrmuc and Iikka Korhonen

International Review of Financial Analysis, 2019, vol. 61, issue C, 274-283

Abstract: This paper offers a systematic evaluation of the evidence on the effects of currency unions on the synchronisation of economic activity. Focusing on Europe, we construct a database of about 3000 business cycles synchronisation coefficients including their design and estimation characteristics. We find that: (1) synchronisation increased from about 0.4 before the introduction of the euro in 1999 to 0.6 afterwards; (2) this increase occurred in both euro and non-euro countries (larger in former); and (3) there is evidence of country-specific publication bias.

Keywords: Business cycles synchronisation; Optimum currency areas; EMU; Euro; Meta-analysis (search for similar items in EconPapers)
JEL-codes: E32 F42 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (46)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:61:y:2019:i:c:p:274-283

DOI: 10.1016/j.irfa.2018.11.012

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