Disentangling Business Cycles and Macroeconomic policy in Mercosur: a VAR and an Unobserved Components Models Approaches

This paper analyses the feasibility of a monetary union within the Mercosur, focusing on cycle synchronicity. Three questions are addressed, concerning respectively the features of shocks hitting each member, the impact of exchange rate regime differences on countries' responses and the share o...

Full description

Saved in:
Bibliographic Details
Published in:Journal of economic integration 2007-09, Vol.22 (3), p.482-514
Main Authors: Allegret, Jean-Pierre, Sand-Zantman, Alain
Format: Article
Language:English
Subjects:
Business cycles
Common markets
Currency
Developing countries
Econometrics
Economic fluctuations
Economic models
Economic policy
Economic theory
Economics
Foreign exchange rates
Interest rates
LDCs
Macroeconomic modeling
Macroeconomic policy
Macroeconomics
Monetary unions
Real exchange rates
Studies
Time series
Vector autoregression
Citations: Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
cited_by cdi_FETCH-LOGICAL-c2035-bd022ab25b462e5b0e2212dd1e809b06bfb6765c1e0984579d420e401d44b0f83
cites
container_end_page 514
container_issue 3
container_start_page 482
container_title Journal of economic integration
container_volume 22
creator Allegret, Jean-Pierre
Sand-Zantman, Alain
description This paper analyses the feasibility of a monetary union within the Mercosur, focusing on cycle synchronicity. Three questions are addressed, concerning respectively the features of shocks hitting each member, the impact of exchange rate regime differences on countries' responses and the share of common and idiosyncratic components in shocks and policy responses. Shocks are identified through identical country-VARs. This paper concludes that there exists a weak cycle synchronization, due to asymmetric shocks and divergences in policy responses. The endogenous approach in OCA theory can advise the adoption of a common nominal anchor, in order to speed up convergence.
doi_str_mv 10.11130/jei.2007.22.3.482
format article
fullrecord <record><control><sourceid>jstor_proqu</sourceid><recordid>TN_cdi_proquest_journals_222324388</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><jstor_id>23000893</jstor_id><sourcerecordid>23000893</sourcerecordid><originalsourceid>FETCH-LOGICAL-c2035-bd022ab25b462e5b0e2212dd1e809b06bfb6765c1e0984579d420e401d44b0f83</originalsourceid><addsrcrecordid>eNo9kE2LFDEQhhtRcF39A4IQvHdvpZL0h7dxVldhB0Fc8RaSdM3aQ0_SpmbE-fdmd8RT1eF93qKeqnotoZFSKrja0dQgQNcgNqrRPT6pLuTQtbUxaJ6WHdHUrZE_nlcvmHcA2GnoL6o_1xNTPLh4P0_xXrw_8hSJWaxPYSYWLo5i40JOFFJM-ymIJc1TOIkpig3lkPiY3wknvq--PmZdFHcxeab8m0axTvslxVLPYpNGmlmsliUnF34Sv6yebd3M9OrfvKzuPn74tv5U3365-bxe3dYBQZnaj4DoPBqvWyTjgRAljqOkHgYPrd_6tmtNkARDr003jBqBNMhRaw_bXl1Wb8-95fCvI_HB7tIxx3LSIqJCrfqHEJ5D5VPmTFu75Gnv8slKsI-CbRFsHwQXyipbBBfozRna8SHl_wQqAOgHpf4C67x46A</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>222324388</pqid></control><display><type>article</type><title>Disentangling Business Cycles and Macroeconomic policy in Mercosur: a VAR and an Unobserved Components Models Approaches</title><source>JSTOR Archival Journals and Primary Sources Collection</source><source>ABI/INFORM Global</source><source>Business Source Ultimate (EBSCOHost)</source><creator>Allegret, Jean-Pierre ; Sand-Zantman, Alain</creator><creatorcontrib>Allegret, Jean-Pierre ; Sand-Zantman, Alain</creatorcontrib><description>This paper analyses the feasibility of a monetary union within the Mercosur, focusing on cycle synchronicity. Three questions are addressed, concerning respectively the features of shocks hitting each member, the impact of exchange rate regime differences on countries' responses and the share of common and idiosyncratic components in shocks and policy responses. Shocks are identified through identical country-VARs. This paper concludes that there exists a weak cycle synchronization, due to asymmetric shocks and divergences in policy responses. The endogenous approach in OCA theory can advise the adoption of a common nominal anchor, in order to speed up convergence.</description><identifier>ISSN: 1225-651X</identifier><identifier>EISSN: 1976-5525</identifier><identifier>DOI: 10.11130/jei.2007.22.3.482</identifier><language>eng</language><publisher>Seoul: Center for International Economics, Sejong Institution</publisher><subject>Business cycles ; Common markets ; Currency ; Developing countries ; Econometrics ; Economic fluctuations ; Economic models ; Economic policy ; Economic theory ; Economics ; Foreign exchange rates ; Interest rates ; LDCs ; Macroeconomic modeling ; Macroeconomic policy ; Macroeconomics ; Monetary unions ; Real exchange rates ; Studies ; Time series ; Vector autoregression</subject><ispartof>Journal of economic integration, 2007-09, Vol.22 (3), p.482-514</ispartof><rights>2007 Center for International Economics, Sejong Institution</rights><rights>Copyright Journal of Economic Integration Sep 2007</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c2035-bd022ab25b462e5b0e2212dd1e809b06bfb6765c1e0984579d420e401d44b0f83</citedby></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://www.jstor.org/stable/pdf/23000893$$EPDF$$P50$$Gjstor$$H</linktopdf><linktohtml>$$Uhttps://www.proquest.com/docview/222324388?pq-origsite=primo$$EHTML$$P50$$Gproquest$$H</linktohtml><link.rule.ids>314,776,780,11667,27901,27902,36037,44339,58213,58446</link.rule.ids></links><search><creatorcontrib>Allegret, Jean-Pierre</creatorcontrib><creatorcontrib>Sand-Zantman, Alain</creatorcontrib><title>Disentangling Business Cycles and Macroeconomic policy in Mercosur: a VAR and an Unobserved Components Models Approaches</title><title>Journal of economic integration</title><description>This paper analyses the feasibility of a monetary union within the Mercosur, focusing on cycle synchronicity. Three questions are addressed, concerning respectively the features of shocks hitting each member, the impact of exchange rate regime differences on countries' responses and the share of common and idiosyncratic components in shocks and policy responses. Shocks are identified through identical country-VARs. This paper concludes that there exists a weak cycle synchronization, due to asymmetric shocks and divergences in policy responses. The endogenous approach in OCA theory can advise the adoption of a common nominal anchor, in order to speed up convergence.</description><subject>Business cycles</subject><subject>Common markets</subject><subject>Currency</subject><subject>Developing countries</subject><subject>Econometrics</subject><subject>Economic fluctuations</subject><subject>Economic models</subject><subject>Economic policy</subject><subject>Economic theory</subject><subject>Economics</subject><subject>Foreign exchange rates</subject><subject>Interest rates</subject><subject>LDCs</subject><subject>Macroeconomic modeling</subject><subject>Macroeconomic policy</subject><subject>Macroeconomics</subject><subject>Monetary unions</subject><subject>Real exchange rates</subject><subject>Studies</subject><subject>Time series</subject><subject>Vector autoregression</subject><issn>1225-651X</issn><issn>1976-5525</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2007</creationdate><recordtype>article</recordtype><sourceid>M0C</sourceid><recordid>eNo9kE2LFDEQhhtRcF39A4IQvHdvpZL0h7dxVldhB0Fc8RaSdM3aQ0_SpmbE-fdmd8RT1eF93qKeqnotoZFSKrja0dQgQNcgNqrRPT6pLuTQtbUxaJ6WHdHUrZE_nlcvmHcA2GnoL6o_1xNTPLh4P0_xXrw_8hSJWaxPYSYWLo5i40JOFFJM-ymIJc1TOIkpig3lkPiY3wknvq--PmZdFHcxeab8m0axTvslxVLPYpNGmlmsliUnF34Sv6yebd3M9OrfvKzuPn74tv5U3365-bxe3dYBQZnaj4DoPBqvWyTjgRAljqOkHgYPrd_6tmtNkARDr003jBqBNMhRaw_bXl1Wb8-95fCvI_HB7tIxx3LSIqJCrfqHEJ5D5VPmTFu75Gnv8slKsI-CbRFsHwQXyipbBBfozRna8SHl_wQqAOgHpf4C67x46A</recordid><startdate>20070901</startdate><enddate>20070901</enddate><creator>Allegret, Jean-Pierre</creator><creator>Sand-Zantman, Alain</creator><general>Center for International Economics, Sejong Institution</general><general>Journal of Economic Integration</general><scope>AAYXX</scope><scope>CITATION</scope><scope>3V.</scope><scope>7RO</scope><scope>7WY</scope><scope>7WZ</scope><scope>7XB</scope><scope>87Z</scope><scope>8AI</scope><scope>8FK</scope><scope>8FL</scope><scope>ABUWG</scope><scope>AFKRA</scope><scope>AXJJW</scope><scope>BENPR</scope><scope>BEZIV</scope><scope>BVBZV</scope><scope>CCPQU</scope><scope>DWQXO</scope><scope>FREBS</scope><scope>FRNLG</scope><scope>F~G</scope><scope>K60</scope><scope>K6~</scope><scope>L.-</scope><scope>M0C</scope><scope>PQBIZ</scope><scope>PQBZA</scope><scope>PQEST</scope><scope>PQQKQ</scope><scope>PQUKI</scope><scope>Q9U</scope></search><sort><creationdate>20070901</creationdate><title>Disentangling Business Cycles and Macroeconomic policy in Mercosur: a VAR and an Unobserved Components Models Approaches</title><author>Allegret, Jean-Pierre ; Sand-Zantman, Alain</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c2035-bd022ab25b462e5b0e2212dd1e809b06bfb6765c1e0984579d420e401d44b0f83</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2007</creationdate><topic>Business cycles</topic><topic>Common markets</topic><topic>Currency</topic><topic>Developing countries</topic><topic>Econometrics</topic><topic>Economic fluctuations</topic><topic>Economic models</topic><topic>Economic policy</topic><topic>Economic theory</topic><topic>Economics</topic><topic>Foreign exchange rates</topic><topic>Interest rates</topic><topic>LDCs</topic><topic>Macroeconomic modeling</topic><topic>Macroeconomic policy</topic><topic>Macroeconomics</topic><topic>Monetary unions</topic><topic>Real exchange rates</topic><topic>Studies</topic><topic>Time series</topic><topic>Vector autoregression</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Allegret, Jean-Pierre</creatorcontrib><creatorcontrib>Sand-Zantman, Alain</creatorcontrib><collection>CrossRef</collection><collection>ProQuest Central (Corporate)</collection><collection>Asian Business Database</collection><collection>ABI/INFORM Collection</collection><collection>ABI/INFORM Global (PDF only)</collection><collection>ProQuest Central (purchase pre-March 2016)</collection><collection>ABI/INFORM Global (Alumni Edition)</collection><collection>Asian Business Database (Alumni Edition)</collection><collection>ProQuest Central (Alumni) (purchase pre-March 2016)</collection><collection>ABI/INFORM Collection (Alumni Edition)</collection><collection>ProQuest Central (Alumni Edition)</collection><collection>ProQuest Central UK/Ireland</collection><collection>Asian &amp; European Business Collection</collection><collection>ProQuest Central</collection><collection>Business Premium Collection</collection><collection>East &amp; South Asia Database</collection><collection>ProQuest One Community College</collection><collection>ProQuest Central Korea</collection><collection>Asian &amp; European Business Collection (Alumni)</collection><collection>Business Premium Collection (Alumni)</collection><collection>ABI/INFORM Global (Corporate)</collection><collection>ProQuest Business Collection (Alumni Edition)</collection><collection>ProQuest Business Collection</collection><collection>ABI/INFORM Professional Advanced</collection><collection>ABI/INFORM Global</collection><collection>ProQuest One Business</collection><collection>ProQuest One Business (Alumni)</collection><collection>ProQuest One Academic Eastern Edition (DO NOT USE)</collection><collection>ProQuest One Academic</collection><collection>ProQuest One Academic UKI Edition</collection><collection>ProQuest Central Basic</collection><jtitle>Journal of economic integration</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Allegret, Jean-Pierre</au><au>Sand-Zantman, Alain</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Disentangling Business Cycles and Macroeconomic policy in Mercosur: a VAR and an Unobserved Components Models Approaches</atitle><jtitle>Journal of economic integration</jtitle><date>2007-09-01</date><risdate>2007</risdate><volume>22</volume><issue>3</issue><spage>482</spage><epage>514</epage><pages>482-514</pages><issn>1225-651X</issn><eissn>1976-5525</eissn><abstract>This paper analyses the feasibility of a monetary union within the Mercosur, focusing on cycle synchronicity. Three questions are addressed, concerning respectively the features of shocks hitting each member, the impact of exchange rate regime differences on countries' responses and the share of common and idiosyncratic components in shocks and policy responses. Shocks are identified through identical country-VARs. This paper concludes that there exists a weak cycle synchronization, due to asymmetric shocks and divergences in policy responses. The endogenous approach in OCA theory can advise the adoption of a common nominal anchor, in order to speed up convergence.</abstract><cop>Seoul</cop><pub>Center for International Economics, Sejong Institution</pub><doi>10.11130/jei.2007.22.3.482</doi><tpages>33</tpages></addata></record>
fulltext fulltext
identifier ISSN: 1225-651X
ispartof Journal of economic integration, 2007-09, Vol.22 (3), p.482-514
issn 1225-651X
1976-5525
language eng
recordid cdi_proquest_journals_222324388
source JSTOR Archival Journals and Primary Sources Collection; ABI/INFORM Global; Business Source Ultimate (EBSCOHost)
subjects Business cycles
Common markets
Currency
Developing countries
Econometrics
Economic fluctuations
Economic models
Economic policy
Economic theory
Economics
Foreign exchange rates
Interest rates
LDCs
Macroeconomic modeling
Macroeconomic policy
Macroeconomics
Monetary unions
Real exchange rates
Studies
Time series
Vector autoregression
title Disentangling Business Cycles and Macroeconomic policy in Mercosur: a VAR and an Unobserved Components Models Approaches
url http://sfxeu10.hosted.exlibrisgroup.com/loughborough?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2025-02-01T01%3A01%3A45IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-jstor_proqu&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Disentangling%20Business%20Cycles%20and%20Macroeconomic%20policy%20in%20Mercosur:%20a%20VAR%20and%20an%20Unobserved%20Components%20Models%20Approaches&rft.jtitle=Journal%20of%20economic%20integration&rft.au=Allegret,%20Jean-Pierre&rft.date=2007-09-01&rft.volume=22&rft.issue=3&rft.spage=482&rft.epage=514&rft.pages=482-514&rft.issn=1225-651X&rft.eissn=1976-5525&rft_id=info:doi/10.11130/jei.2007.22.3.482&rft_dat=%3Cjstor_proqu%3E23000893%3C/jstor_proqu%3E%3Cgrp_id%3Ecdi_FETCH-LOGICAL-c2035-bd022ab25b462e5b0e2212dd1e809b06bfb6765c1e0984579d420e401d44b0f83%3C/grp_id%3E%3Coa%3E%3C/oa%3E%3Curl%3E%3C/url%3E&rft_id=info:oai/&rft_pqid=222324388&rft_id=info:pmid/&rft_jstor_id=23000893&rfr_iscdi=true