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Economic cycle synchronization in the context of financial crisis: empirical evidence of Denmark, Sweden and United Kingdom

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  • Svatopluk Kapounek

    (Ústav financí, Mendelova univerzita v Brně, Zemědělská 1, 613 00 Brno, Česká republika)

  • Jan Sečkař

    (Ústav financí, Mendelova univerzita v Brně, Zemědělská 1, 613 00 Brno, Česká republika)

Abstract

The paper focuses on the economic cycle synchronization of the euro area outsiders: Denmark, Sweden and United Kingdom. The authors discussed openness of the selected economies, their structural similarities and economic cycle synchronization in the years 2000-2011. They applied moving correlation and correlation between the selected countries and the euro area. They found significant synchronization of the economic cycles after the year 2005. Furthermore, economic cycles of the analyzed countries were exceptionally synchronized than the euro area average level.Our contribution is in comparison of the economic cycle synchronization in the selected countries with the euro area average. The authors assume that changes in order provide important information about the synchronization, unbiased by the consequences of the financial crisis in the year 2007.A theoretical background for the final discussions provided new version of the OCA theory focused on the costs associated with the loss of the monetary policy autonomy. The authors concluded that selected countries were not protected against the global macroeconomic shock after the year 2007, although they keep the autonomous monetary policy.

Suggested Citation

  • Svatopluk Kapounek & Jan Sečkař, 2012. "Economic cycle synchronization in the context of financial crisis: empirical evidence of Denmark, Sweden and United Kingdom," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 60(7), pages 155-162.
    • Handle: RePEc:mup:actaun:actaun_2012060070155
    DOI: 10.11118/actaun201260070155
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    References listed on IDEAS

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    6. Martin Gächter & Aleksandra Riedl & Doris Ritzberger-Grünwald, 2012. "Business Cycle Synchronization in the Euro Area and the Impact of the Financial Crisis," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 2, pages 33-60.
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