Convergence of the Economic Sentiment Cycles in the Eurozone: A Time‐Frequency Analysis
22 Pages Posted: 28 Mar 2013
Date Written: May 2013
Abstract
In this article, wavelet tools and economic sentiment indicators are used to study the similarity and synchronization of economic cycles in the eurozone. The time‐varying and frequency‐varying patterns of business cycles synchronization are assessed and the impact of the creation of the European monetary union (EMU) in 1999 is tested. Among several results, it is found that: the EMU is associated with a significant increase in the similarity and synchronization of the economic sentiment in the eurozone; and the hard‐peg of its currency to the euro led to a comparable effect on Denmark's economic sentiment after 1999, different from what happened in the United Kingdom.
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Shocking Aspects of European Monetary Unification
By Tamim Bayoumi and Barry Eichengreen
-
International Business Cycles: World, Region, and Country-Specific Factors
By M. Ayhan Kose, Chris Otrok, ...
-
Understanding Changes in International Business Cycle Dynamics
By James H. Stock and Mark W. Watson
-
Trade, Finance, Specialization and Synchronization
By Jean M. Imbs
-
Trade, Finance, Specialization and Synchronization
By Jean M. Imbs
-
Trade, Finance, Specialization, and Synchronization
By Jean M. Imbs
-
Risk Sharing and Industrial Specialization: Regional and International Evidence
By Bent E. Sørensen, Sebnem Kalemli-ozcan, ...
-
Sectoral and National Aggregate Disturbances to Industrial Output in Seven European Countries