Historical Decoupling in the EU: Evidence from Time-Frequency Analysis

Svatopluk Kapounek and Zuzana Kucerova

No 2018-75, MENDELU Working Papers in Business and Economics from Mendel University in Brno, Faculty of Business and Economics

Abstract: We investigate economic cycle comovements across the European Union after twenty years from euro adoption. We demonstrate the cycle comovement between France and the EU and the decoupling of Germany, the United Kingdom and countries in Southern Europe. We find that the Baltic countries represent a single economic area with common shocks. Using wavelet coherence analysis with phase shift, we identify directions of causal relationships and discuss the spread of asymmetric shocks across the European Union. Our results do not fully support the idea that monetary integration increases the synchronisation of economic cycles of monetary union members.

Keywords: OCA Theory; Economic Cycles; Time-series co-movements; Wavelet Analysis; Phase Shift (search for similar items in EconPapers)
JEL-codes: C14 E32 F15 (search for similar items in EconPapers)
Pages: 24
Date: 2018-06
New Economics Papers: this item is included in nep-eec, nep-mac and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Historical decoupling in the EU: Evidence from time-frequency analysis (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:men:wpaper:75_2018

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