Macroeconomic Imbalances and Business Cycle Convergence in the EU

Type Research Project

Funding Bodies

Duration May 1, 2014 - Nov. 30, 2015

  • Department of Economics (Badinger) AE (Details)


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  • De Luigi, Clara (Former researcher)
  • Lukmanova, Elizaveta (Former researcher)
  • Reininger, Christian (Former researcher)
  • Tondl, Gabriele (Details) Project Head

Abstract (English)

This project investigates empirically if macroeconomic imbalances as listed by the European Commission´s scoreboard indicators have contributed to periods of diverging business cycles. Hereby, it focuses on the desynchronizing effects of imbalances in the current account, excessive public and private debt and country-specific booms/recessions. In addition, the effects of a common monetary policy under decoupled economic activity are considered. A strong influence in the results would support the idea of stringent surveillance and strengthened economic policy coordination in the Eurozone since co-movement of cycles is a condition for a well-functioning monetary union.


Journal article

2017 Lukmanova, Elizaveta, Tondl, Gabriele. 2017. Macroeconomic imbalances and business cycle synchronization. Why common economic governance is imperative for the Eurozone. Economic Modelling 62, 130-144. (Details)



  • business cycles