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

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Listed:
  • 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)

Abstract

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.

Suggested Citation

  • Antonakakis, Nikolaos & Gogas, Periklis & Papadimitriou, Theophilos & Sarantitis, Georgios, 2015. "International Business Cycle Synchronization Since the 1870s: Evidence from a Novel Network Approach," DUTH Research Papers in Economics 2-2015, Democritus University of Thrace, Department of Economics.
  • Handle: RePEc:ris:duthrp:2015_002
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    Cited by:

    1. repec:eee:phsmap:v:486:y:2017:i:c:p:933-946 is not listed on IDEAS
    2. Matesanz, David & Ortega, Guillermo J., 2016. "On business cycles synchronization in Europe: A note on network analysis," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 462(C), pages 287-296.

    More about this item

    Keywords

    Business cycle synchronization; Globalisation; Complex networks;

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative

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