Business Cycle Synchronisation in a Currency Union: Taking Stock of the Evidence
Nauro Campos (),
Jarko Fidrmuc () and
No GRU_2017_017, GRU Working Paper Series from City University of Hong Kong, Department of Economics and Finance, Global Research Unit
This paper offers a first 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 3,000 business cycles synchronisation coefficients and 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); (3) there is evidence of country-specific publication bias; (4) our differences-in-differences estimates suggest the euro accounted for approximately half of the observed increase in synchronisation.
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)
Pages: 59 pages
New Economics Papers: this item is included in nep-mac and nep-mon
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Working Paper: Business Cycle Synchronisation in a Currency Union: Taking Stock of the Evidence (2018)
Working Paper: Business cycle synchronisation in a currency union: Taking stock of the evidence (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:cth:wpaper:gru_2017_017
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