Data Management

Business Cycle Synchronization In Europe Evidence From The Scandinavian Currency Union

Date Added: Feb 2010
Format: PDF

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. The authors 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 they find evidence suggesting that the importance of these shocks does not depend on the monetary regime.