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Have Business Cycles Become More Synchronized?

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  • Jakob De Haan
  • Robert Inklaar
  • Olaf Sleijpen

Abstract

Will further integration make business cycles in EMU countries more similar? This article answers the question by analysing to what extent business cycles in US and German states have become more synchronized and by examining whether synchronization in OECD countries is affected by trade intensity and exchange rate stability. Using long‐run data for the US we find only mixed evidence for synchronization. However, post‐war data for Germany suggest that business cycles behave more similarly over time. The evidence for OECD countries is mixed: trade intensity has led to more, and exchange rate stability to less, synchronization.

Suggested Citation

  • Jakob De Haan & Robert Inklaar & Olaf Sleijpen, 2002. "Have Business Cycles Become More Synchronized?," Journal of Common Market Studies, Wiley Blackwell, vol. 40(1), pages 23-42, March.
    • Handle: RePEc:bla:jcmkts:v:40:y:2002:i:1:p:23-42
    DOI: 10.1111/1468-5965.00342
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