Data Management

Measuring The Business Cycle Similarity And Convergence Trends In The CEECs Towards The Eurozone With Respect To Some Unclear Methodological Aspects

Date Added: Oct 2009
Format: PDF

The adoption of the Euro by Slovakia as of January 2009 and the current world economic crises revived a debate on timing of the Euro adoption in the Czech Republic and other CEECs. The purpose of the paper is to contribute to a discussion on the process of joining the Eurozone by the Czech Republic and other candidate countries. The paper provides an analysis of some business cycle similarity and convergence measures using different indicators and detrending techniques. Measures of business cycle similarity are ordinarily used to evaluate preparedness of candidate countries to join the Eurozone. The results indicate continuing convergence of the business cycle similarity between the candidate and Eurozone member countries.