IDEAS home Printed from https://ideas.repec.org/a/mes/eaeuec/v58y2020i1p68-82.html
   My bibliography  Save this article

Decoupling after the Crisis: Western and Eastern Business Cycles in the European Union

Author

Listed:
  • Krzysztof Beck

Abstract

The aftermath of the crisis in Europe renewed the interest in the comovement business cycles and the ability of the European Central Bank (ECB) to implement a common monetary policy. Depending on the examined time period, the sample of countries and the utilized methodology, the research shows evidence of both convergence and decoupling of European business cycles. The present paper extends this research agenda by applying Bayesian dynamic latent factor models to the time series of GDP growth and the inflation of the Eurozone and Central and Eastern Europe (CEE) countries from 2000 till 2018. The results show evidence of two distinct business cycles in the Eurozone and the CEE, as well as the progressing decoupling in the European Union and convergence within the Eastern and Western Europe. Comovement of inflation has been slowly declining in the Eurozone, suggesting decreasing effectiveness of the EBC in following the inflation target in the entire euro area.

Suggested Citation

  • Krzysztof Beck, 2020. "Decoupling after the Crisis: Western and Eastern Business Cycles in the European Union," Eastern European Economics, Taylor & Francis Journals, vol. 58(1), pages 68-82, January.
  • Handle: RePEc:mes:eaeuec:v:58:y:2020:i:1:p:68-82
    DOI: 10.1080/00128775.2019.1656086
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00128775.2019.1656086
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/00128775.2019.1656086?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Krzysztof Beck & Ntokozo Patrick Nzimande, 2023. "Labor mobility and business cycle synchronization in Southern Africa," Economic Change and Restructuring, Springer, vol. 56(1), pages 159-179, February.
    2. Yersh, Valeryia, 2020. "Current account sustainability and capital mobility in Latin American and Caribbean countries," MPRA Paper 105440, University Library of Munich, Germany.
    3. Krzysztof Beck & Karen Jackson, 2024. "International trade fluctuations: Global versus regional factors," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 57(1), pages 331-358, February.
    4. Beck, Krzysztof, 2021. "Why business cycles diverge? Structural evidence from the European Union," Journal of Economic Dynamics and Control, Elsevier, vol. 133(C).
    5. Beck, Krzysztof & Yersh, Valeryia, 2024. "Economic integration and consumption risk sharing: A comparison of Eurozone and OECD countries," International Review of Economics & Finance, Elsevier, vol. 89(PB), pages 784-803.
    6. Czyżewski, Daniel, 2021. "The relationship between the international trade and economic growth accounting for model uncertainty and reverse causality," MPRA Paper 108405, University Library of Munich, Germany.
    7. Krzysztof Beck, 2022. "Macroeconomic policy coordination and the European business cycle: Accounting for model uncertainty and reverse causality," Bulletin of Economic Research, Wiley Blackwell, vol. 74(4), pages 1095-1114, October.
    8. Krzysztof Beck, 2021. "Capital mobility and the synchronization of business cycles: Evidence from the European Union," Review of International Economics, Wiley Blackwell, vol. 29(4), pages 1065-1079, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:eaeuec:v:58:y:2020:i:1:p:68-82. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MEEE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.