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Business Cycle Synchronization in Europe: Evidence from the Scandinavian Currency Union - U. Michael

U. Michael Bergman, University of Copenhagen, and Lars Jonung, European Commission

Business Cycle Synchronization in Europe: Evidence from the Scandinavian Currency Unionpdf(630 kB) Choose translations of the previous link 

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This paper studies business cycle synchronization in the three Scandinavian countries Denmark, Norway and Sweden prior to, during and after the Scandinavian Currency Union 1873-1913. We find that the degree of synchronization tended to increase during the currency union, thus supporting earlier empirical evidence. Estimates of factor models suggest that common Scandinavian shocks are important for these three countries. At the same time we find evidence suggesting that the importance of these shocks does not depend on the monetary regime.

(European Economy. Economic Papers. 402. February 2010. Brussels. PDF. 63pp. Free.)

KC-AI-10-402-EN-N (online)
ISBN 978-92-79-14888-0 (online)
ISSN 1725-3187
doi:10.2765/39221 (online)

JEL classification: E32, F41

Economic Papers are written by the staff of the Directorate-General for Economic and Financial Affairs, or by experts working in association with them. The Papers are intended to increase awareness of the technical work being done by staff and to seek comments and suggestions for further analysis. The views expressed are the author’s alone and do not necessarily correspond to those of the European Commission.

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