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Volume 52, July/August 2017, Number 4 | pp. 238-241

Articles

Business Cycle Desynchronisation: Amplitude and Beta vs. Co-movement

Ansgar Belke, Clemens Bernhard Domnick, Daniel Gros

A high degree of correlation among the business cycles of individual countries is usually seen as a key criterion for an optimum currency area. However, the elasticity with which countries react to the common cycle is equally important. A country with a non-unitary growth elasticity relative to the common area will experience cyclical divergences at the peak and trough of the common cycle. Despite being characterised by highly correlated business cycles, the euro area suffers from widely differing amplitudes.

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This Intereconomics article is available for free at this page after an embargo period of two years. Reading it before April 2019 is possible via SpringerLink or in the next library.