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The endogeneity of optimum currency area criteria in the context of financial crisis: Evidence from the time-frequency domain analysis

Author

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  • Svatopluk KAPOUNEK

    (Department of Finance, Faculty of Business Economics, Mendel University in Brno, Brno, Czech Republic)

  • Jitka POMĚNKOVÁ

    (Department of Radio Electronics, Faculty of Electrical Engineering and Communication, Brno University of Technology, Brno, Czech republic)

Abstract

We provide the wavelet analysis of the economic cycle synchronization during the recent financial crisis. However, the global financial crisis caused economic cycles in most European countries to become more strongly synchronized without increasing of the real convergence process. Our contribution is an application of the singular value decomposition to identify and remove the long-term trend including outliers appearing in the year 2007-2010. We found that the historically greater integration provides more highly synchronized cycles in the core Euro area member countries.

Suggested Citation

  • Svatopluk KAPOUNEK & Jitka POMĚNKOVÁ, 2013. "The endogeneity of optimum currency area criteria in the context of financial crisis: Evidence from the time-frequency domain analysis," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 59(9), pages 389-395.
    • Handle: RePEc:caa:jnlage:v:59:y:2013:i:9:id:9-2013-agricecon
    DOI: 10.17221/9/2013-AGRICECON
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    Cited by:

    1. Tomas MACAK & Jan HRON, 2016. "Robust parameter design for the optimisation of cutting conditions according to energy efficiency criteria," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 62(12), pages 537-542.
    2. Fidrmuc, Jarko & Wörgötter, Andreas, 2014. "Euro Membership, Foreign Banks And Credit Developments During The Financial Crisis In Slovakia: A Case Study," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 17(1), March.
    3. repec:ags:aoeisl:170471 is not listed on IDEAS
    4. Giray GOZGOR & Cahit MEMIS, 2015. "Price volatility spillovers among agricultural commodity and crude oil markets: Evidence from the range-based estimator," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(5), pages 214-221.
    5. Jiří LÝSEK & Jiří ŠŤASTNÝ, 2014. "Automatic discovery of the regression model by the means of grammatical and differential evolution," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 60(12), pages 546-552.

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    More about this item

    Keywords

    Euro area; singular value decomposition; synchronization; wavelet analysis;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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