Macroeconomic Imbalances and Business Cycle Convergence in the EU

Type Research Project

Funding Bodies
  • Oesterreichische Nationalbank (Jubiläumsfonds)

Duration May 1, 2014 - Nov. 30, 2015

  • Institute for International Economics IN (Details)

Tags

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  • De Luigi, Clara (Details)
  • 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.

Publications

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)

Classification

Expertise

  • business cycles