The endogeneity of optimum currency area criteria in the context of financial crisis: Evidence from the time-frequency domain analysis

We provide the wavelet analysis of the economic cycle synchronization during the recent financial crisis. However, the global financial crisis caused economic cycles in most European countries to become more strongly synchronized without increasing of the real convergence process. Our contribution i...

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Bibliographic Details
Published in:Agricultural economics (Praha) 2013-01, Vol.59 (9), p.389-395
Main Authors: KAPOUNEK, Svatopluk, POMĚNKOVÁ, Jitka
Format: Article
Language:English
Subjects:
Agricultural economics
Data analysis
Economic analysis
Economic crisis
euro area
Frequency analysis
Frequency domain analysis
International finance
Outliers (statistics)
Singular value decomposition
Synchronism
Synchronization
Wavelet analysis
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Summary:We provide the wavelet analysis of the economic cycle synchronization during the recent financial crisis. However, the global financial crisis caused economic cycles in most European countries to become more strongly synchronized without increasing of the real convergence process. Our contribution is an application of the singular value decomposition to identify and remove the long-term trend including outliers appearing in the year 2007–2010. We found that the historically greater integration provides more highly synchronized cycles in the core Euro area member countries.
ISSN:0139-570X
1805-9295
DOI:10.17221/9/2013-AGRICECON