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Meta-Analysis of the Business Cycle Correlation between the Euro Area and the CEECs

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  • Jarko Fidrmuc
  • Iikka Korhonen

Abstract

We review the literature on business cycle correlation between the euro area and the Central and Eastern European countries (CEECs), a topic that has gained attention as the newest EU members approach monetary union. Our meta-analysis of 35 identified publications suggests some CEECs already have comparably high correlation with the euro area business cycle. We find that estimation methodologies can have a significant effect on correlation coefficients. While CEEC central bankers tend to be more conservative in their estimates than academics or eurosystem researchers, we find no evidence of a geographical bias in the studies.

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  • Jarko Fidrmuc & Iikka Korhonen, 2006. "Meta-Analysis of the Business Cycle Correlation between the Euro Area and the CEECs," CESifo Working Paper Series 1693, CESifo.
  • Handle: RePEc:ces:ceswps:_1693
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    Keywords

    monetary union; optimum currency area; business cycles; meta analysis;
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