A meta-analysis of business cycle correlation between the euro area and CEECs : What do we know - and who cares?
Fidrmuc, Jarko; Korhonen, Iikka (05.12.2004)
JulkaisusarjaBOFIT Discussion Papers
JulkaisijaBank of Finland
Julkaisun pysyvä osoite onhttps://urn.fi/URN:NBN:fi:bof-201408072118
We review the literature on business-cycle correlation between the euro area and Central and Eastern European countries (CEECs), a topic that has gained attention in recent years as new EU entrants prepare for participation in the monetary union.Our meta-analysis suggests several CEECs already have comparably high correlation with the euro area business cycle.We also find that estimation methodologies can have a significant effect on correlation coefficients.While central bankers are more conservative in their estimates, we find no evidence of a geographical bias in the studies.JEL-Numbers: C42, E32, F15, F31.Key words: monetary union, optimum currency area, business cycles, meta- analysis.
Published in Journal of Comparative Economics, Vol.34, No.3 (2006), pp. 518-537 and Center for economic studies ; IFO Institute ; CESifo working paper 1693.