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International Business Cycle Synchronization Since the 1870s: Evidence from a Novel Network Approach

Listed author(s):
  • Antonakakis, Nikolaos

    ()

    (Vienna University of Economics and Business)

  • Gogas, Periklis

    ()

    (Democritus University of Thrace, Department of Economics)

  • Papadimitriou, Theophilos

    ()

    (Democritus University of Thrace, Department of Economics)

  • Sarantitis, Georgios

    ()

    (Democritus University of Thrace, Department of Economics)

In this study, we examine the issue of business cycle synchronization from a historical perspective in 27 developed and developing countries. Based on a novel complex network approach, the Threshold-Minimum Dominating Set (T-MDS), our results reveal heterogeneous patterns of international business cycle synchronization during fundamental globalization periods since the 1870s. In particular, the proposed methodology reveals that worldwide business cycles de-coupled during the Gold Standard, though they were synchronized during the Great Depression. The Bretton Woods era was associated with a lower degree of synchronization as compared to that during the Great Depression, while worldwide business cycle synchronization increased to unprecedented levels during the latest period of floating exchange rates and the Great Recession.

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Paper provided by Democritus University of Thrace, Department of Economics in its series DUTH Research Papers in Economics with number 2-2015.

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Length: 18 pages
Date of creation: 14 Dec 2015
Handle: RePEc:ris:duthrp:2015_002
Contact details of provider: Postal:
Department of Economics, University Campus, Komotini, 69100, Greece

Phone: (25310) 39.503
Fax: (25310) 39.502
Web page: http://www.econ.duth.gr/

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  3. Periklis Gogas, 2013. "Business cycle synchronisation in the European Union: The effect of the common currency," OECD Journal: Journal of Business Cycle Measurement and Analysis, OECD Publishing, Centre for International Research on Economic Tendency Surveys, vol. 2013(1), pages 1-14.
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