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A high degree of correlation among the business cycles of individual countries is usually seen as a key criterion for an optimum currency area. However, the elasticity with which countries… Click to show full abstract
A high degree of correlation among the business cycles of individual countries is usually seen as a key criterion for an optimum currency area. However, the elasticity with which countries react to the common cycle is equally important. A country with a non-unitary growth elasticity relative to the common area will experience cyclical divergences at the peak and trough of the common cycle. Despite being characterised by highly correlated business cycles, the euro area suffers from widely differing amplitudes.
Keywords:
cycle desynchronisation;
cycle;
desynchronisation amplitude;
business;
amplitude beta;
business cycle
Journal Title: Intereconomics
Year Published: 2017
Link to full text (if available)
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Journal Title: Intereconomics
Year Published: 2017
Link to full text (if available)
Share on Social Media: Sign Up to like & get
recommendations!