International Business Cycle

Prime stylized facts of international business cycle theory refer to positive correlation in the cyclical components of important macroeconomic variables across countries. However a number of indicators of business cycle synchronization do not point to clear trends. It can be ascribed to the fact th...

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Main Author: Marek Lubiński
Format: Article
Language:English
Published: VIZJA University 2007-06-01
Series:Contemporary Economics
Online Access:http://ce.vizja.pl/en/download-pdf/id/11
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author Marek Lubiński
author_facet Marek Lubiński
author_sort Marek Lubiński
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description Prime stylized facts of international business cycle theory refer to positive correlation in the cyclical components of important macroeconomic variables across countries. However a number of indicators of business cycle synchronization do not point to clear trends. It can be ascribed to the fact that different forces influence level of business cycle correlation. When investigating into the forces behind the commonness in aggregate fluctuations economic research seems to have pointed in two directions. One strand of the literature examines the idea of common exogenous shocks that affect economies simultaneously. In addition to that economic interdependencies such as trade in goods and services or capital account transactions may serve as the channels through which disturbances spill over across countries.The observed degree of output co movement reflects both the nature of the shocks that have occurred and the degree of economic interdependence. In the periods when common shocks prevail level of synchronization is usually higher than in times of transmission dominance.
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spelling doaj-art-c5f2acf4e6ce47a0bfd9019be6cd3aa82025-08-20T03:22:42ZengVIZJA UniversityContemporary Economics2084-08452007-06-01121152International Business CycleMarek LubińskiPrime stylized facts of international business cycle theory refer to positive correlation in the cyclical components of important macroeconomic variables across countries. However a number of indicators of business cycle synchronization do not point to clear trends. It can be ascribed to the fact that different forces influence level of business cycle correlation. When investigating into the forces behind the commonness in aggregate fluctuations economic research seems to have pointed in two directions. One strand of the literature examines the idea of common exogenous shocks that affect economies simultaneously. In addition to that economic interdependencies such as trade in goods and services or capital account transactions may serve as the channels through which disturbances spill over across countries.The observed degree of output co movement reflects both the nature of the shocks that have occurred and the degree of economic interdependence. In the periods when common shocks prevail level of synchronization is usually higher than in times of transmission dominance.http://ce.vizja.pl/en/download-pdf/id/11
spellingShingle Marek Lubiński
International Business Cycle
Contemporary Economics
title International Business Cycle
title_full International Business Cycle
title_fullStr International Business Cycle
title_full_unstemmed International Business Cycle
title_short International Business Cycle
title_sort international business cycle
url http://ce.vizja.pl/en/download-pdf/id/11
work_keys_str_mv AT mareklubinski internationalbusinesscycle