Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212399 
Year of Publication: 
2017
Series/Report no.: 
Bank of Finland Research Discussion Papers No. 28/2017
Publisher: 
Bank of Finland, Helsinki
Abstract: 
This paper offers a first systematic evaluation of the evidence on the effects of currency unions on the synchronisation of economic activity. Focusing on Europe, we construct a database of about 3,000 business cycle synchronisation coefficients as well as their design and estimation characteristics. We find that: (1) synchronisation increased from about 0.4 before the introduction of the euro in 1999 to 0.6 afterwards; (2) this increase occurred in both euro and non-euro countries (larger in former); (3) there is evidence of country-specific publication bias; (4) our difference-in-differences estimates suggest the euro accounted for approximately half of the observed increase in synchronisation.
JEL: 
E32
F42
Persistent Identifier of the first edition: 
ISBN: 
978-952-323-187-0
Document Type: 
Working Paper

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