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Synchronization of the business cycle with that of the eurozone after accession to the European Union. The case of Romania

Author

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  • Matei Elena Florentina

    (Doctoral School Economy I, Academy of Economic Studies, Bucharest, Romania)

  • Mindrican Ioana Manuela

    (Doctoral School Economy I, Academy of Economic Studies, Bucharest, Romania)

Abstract

This article provides an overview and update on the degree of convergence of Romania with the Eurozone, in terms of business cycles and also taking into account the economic context and economic policies implemented. The synchronization of the business cycle of the Romanian economy with that of the Eurozone is an essential condition for the sustainable adoption of the single currency, because the higher the level of synchronization, the lower the accession costs will tend to benefits, and in the end there will be no severe shocks to the economy. The main objective of this document is to identify the level of convergence of the two business cycles for the period 2007-2020, in order to highlight the level of preparation of the Romanian economy in terms of the adoption of the euro. If a low level of synchronization of the two business cycles is identified, the shocks will be asymmetric and will lead to a strong negative impact on the economy and will make the country in question a peripheral state of the Eurozone.

Suggested Citation

  • Matei Elena Florentina & Mindrican Ioana Manuela, 2022. "Synchronization of the business cycle with that of the eurozone after accession to the European Union. The case of Romania," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 16(1), pages 682-694, August.
    • Handle: RePEc:vrs:poicbe:v:16:y:2022:i:1:p:682-694:n:7
    DOI: 10.2478/picbe-2022-0065
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    References listed on IDEAS

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    4. Guido Schwerdt & Jarkko Turunen, 2007. "Growth In Euro Area Labor Quality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 53(4), pages 716-734, December.
    5. Sala-i-Martin, Xavier, 1997. "I Just Ran Two Million Regressions," American Economic Review, American Economic Association, vol. 87(2), pages 178-183, May.
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