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Macroeconomic Synchronization Between G3 Countries

Author

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  • Amado Peiró

    (Universitat de València)

Abstract

This paper studies the existence of a world business cycle by examining quarterly and annual comovements in production, prices, and interest rates in the three main world economies: Germany, Japan and the U.S. In accordance with earlier studies, contemporaneous relationships clearly dominate short-term dynamics. The evidence indicates that, in the last four decades, these comovements are clearly significant in all the variables, with the possible exception of short-term interest rates, and they are stronger for long-term interest rates; nevertheless, they are rather unstable over time. Este artículo estudia la existencia de un ciclo económico mundial mediante elexamen de movimientos comunes en la producción, los precios y los tipos de interés enlas tres mayores economías mundiales: Alemania, Japón y los Estados Unidos. Deacuerdo con estudios anteriores, las relaciones contemporáneas dominan claramente alas relaciones dinámicas a corto plazo. La evidencia indica que, en las últimas cuatrodécadas, estos movimientos comunes son claramente significativos para todas lasvariables, con la posible excepción de los tipos de interés a corto plazo, y de mayorintensidad para los tipos de interés a largo plazo; sin embargo, son bastante inestables alo largo del tiempo.

Suggested Citation

  • Amado Peiró, 2002. "Macroeconomic Synchronization Between G3 Countries," Working Papers. Serie EC 2002-16, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  • Handle: RePEc:ivi:wpasec:2002-16
    as

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    File URL: http://www.ivie.es/downloads/docs/wpasec/wpasec-2002-16.pdf
    File Function: Fisrt version / Primera version, 2002
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    References listed on IDEAS

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    Cited by:

    1. Narayan, Seema, 2014. "Integration of current account imbalances in the OECD," Economic Modelling, Elsevier, vol. 38(C), pages 288-295.

    More about this item

    Keywords

    ciclo económico mundial; movimiento común; sincronización. comovement; synchronization; world business cycle.;

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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