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Business Cycles, Core and Periphery in Monetary Unions: Comparing Europe and North America

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  • Alexandra Ferreira-Lopes

    ()
    (ISCTE - Department of Economics, UNIDE-ERC and DINÂMIA)

  • Álvaro M. Pina

    ()
    (ISEG-UTL and UECE)

Abstract

We compare Europe with the USA and Canada as regards business cycle synchronization and core-periphery patterns. A long sample (1950-2005) makes it possible to study how these aspects have evolved over time. Results support the economic viability of EMU. Average cyclical correlations among European countries have risen significantly, reaching levels close to, or even higher than, those of North American regions. Applying fuzzy clustering to the analysis of core-periphery issues, we find Europe to actually outperform North America: the core-periphery divide is milder, and peripheral status seems generally less protracted.

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File URL: http://bru-unide.iscte.pt/RePEc/pdfs/ERCwp1908.pdf
File Function: First version, 2008
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Bibliographic Info

Paper provided by ISCTE-IUL, Business Research Unit (BRU-IUL) in its series Working Papers Series 1 with number ercwp1908.

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Length: 37 pages
Date of creation: 15 Mar 2008
Date of revision:
Handle: RePEc:isc:iscwp1:ercwp1908

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Keywords: European Union; Canada; United States; Monetary Unions; Business Cycles; Fuzzy Clustering;

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References

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Cited by:
  1. Erden, Lutfi & Ozkan, Ibrahim, 2014. "Determinants of international transmission of business cycles to Turkish economy," Economic Modelling, Elsevier, vol. 36(C), pages 383-390.
  2. Degiannakis, Stavros & Duffy, David & Filis, George, 2013. "Time-varying Business Cycles Synchronisation in Europe," MPRA Paper 52925, University Library of Munich, Germany.
  3. Papageorgiou, Theofanis & Michaelides, Panayotis G. & Milios, John G., 2010. "Business cycles synchronization and clustering in Europe (1960-2009)," Journal of Economics and Business, Elsevier, vol. 62(5), pages 419-470, September.

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