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Oxford Economic Papers 2001; 53:215-220
Copyright © 2001 Oxford Universty Press
Article |
Is there really a European business cycle? A comment
z Department of Economics, University of Groningen, PO Box 800, 9700 AV Groningen, The Netherlands
y Department of Economics, University of Groningen, Groningen, The Netherlands
CESifo
E-mail: j.de.haan@eco.rug.nl
Abstract
In this paper we argue that in contrast to the conclusion of Artis and Zhang, there is not much evidence in support of the view that increased exchange rate stability is related to more synchronised business cycles in Europe. This finding may have important consequences, as existing differences in business cycles in the EMU-countries may not disappear due to further monetary integration, making a common monetary policy hazardous.
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