Published in:CESifo Working Paper Series ; No. 4505
Extent:
1 Online-Ressource (23 p)
Language:
English
DOI:
10.2139/ssrn.2371219
Identifier:
Origination:
University thesis:
Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments December 23, 2013 erstellt
Description:
Using a panel of annual data for 20 countries we show that synchronized fiscal consolidation (stimulus) programmes in different countries make their business cycles more closely linked, especially in the case of fiscal adjustments lasting 2 or 3 years. We also find: (i) little evidence of decoupling when an inflation targeting regime is unilaterally adopted; (ii) an increase in business cycle synchronization when countries fix their exchange rates and become members of a monetary union; (iii) a positive effect of bilateral trade on the synchronization of business cycles