EconPapers    
Economics at your fingertips  
 

Business cycle convergence in EMU: A second look at the second moment

Jes?s Crespo-Cuaresma () and Octavio Fern?ndez-Amador ()
Authors registered in the RePEc Author Service: Octavio Fernández-Amador () and Jesus Crespo Cuaresma ()

Working Papers from Faculty of Economics and Statistics, University of Innsbruck

Abstract: We analyse the dynamics of the standard deviation of demand shocks and of the demand component of GDP across countries in the European Monetary Union (EMU). This analysis allows us to evaluate the patterns of cyclical comovement in EMU and put them in contrast to the cyclical performance of the new members of the EU and other OECD countries. We use the methodology put forward in Crespo-Cuaresma and Fern?ndez-Amador (2010), which makes use of sigma-convergence methods to identify synchronization patterns in business cycles. The Eurozone has converged to a stable lower level of dispersion across business cycles during the end of the 80s and the beginning of the 90s. The new EU members have also experienced a strong pattern of convergence from 1998 to 2005, when a strong divergence trend appears. An enlargement of the EMU to 22 members would not decrease its optimality as a currency area. There is evidence for some European idiosyncrasy as opposed to a world-wide comovement.

Keywords: Business cycle synchronization; structural VAR; demand shocks; European Monetary Union (search for similar items in EconPapers)
JEL-codes: E32 E63 F02 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-mac and nep-opm
Date: 2010-09
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www2.uibk.ac.at/downloads/c4041030/wpaper/2010-25.pdf (application/pdf)

Related works:
Journal Article: Business cycle convergence in EMU: A second look at the second moment (2013) Downloads
Working Paper: Business cycle convergence in EMU: A second look at the second moment (2010) Downloads
Working Paper: Business cycle convergence in EMU: A second look at the second moment (2010) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inn:wpaper:2010-25

Access Statistics for this paper

More papers in Working Papers from Faculty of Economics and Statistics, University of Innsbruck Contact information at EDIRC.
Bibliographic data for series maintained by Janette Walde ().

 
Page updated 2019-09-15
Handle: RePEc:inn:wpaper:2010-25