, inter alia, the intensity or trade with other potential members of the currency union, and the extent to which domestic … business cycles are correlated with those of the other countries. But international trade patterns and international business … close trade links tend to have more tightly correlated business cycles. It follows that countries are more likely to satisfy …

This Paper introduces Heckscher-Ohlin trade features into a two-country DSGE model, and studies how productivity shocks … propagate through trade in goods. In comparison with standard models, the business cycle properties of our framework are broadly … model’s predictions on the correlation of the terms of trade with the main aggregate variables are compatible with the data. …

participant countries in the ERM. Supplementing these correlations with criteria based on real exchange rate volatility, trade and …

of trade impacting on rich countries' business cycles is thus mitigated, and its direct impact lessened. The structure of …

intranational data to evaluate the linkages between trade in goods, trade in financial assets, specialization and business cycles …) Simultaneity is important, as both trade and financial openness have a direct and an indirect effect on cycles of synchronization … sizeable effect on business cycles, above and beyond their reflection of intra-industry trade and of openness to goods and …

This paper provides novel evidence on the determinants of the synchronization in business cycles. I find trade has …