We examine real business cycle convergence for 41 euro area regions and 48 US states. Results obtained by a panel model … decades in the euro area and the US. Ongoing business cycle convergence often detected in a country data is not confirmed at … the regional level. The degree of synchronization across the euro area is similar to that to be found for the US states …

convergence for 41 euro area regions and 48 US states. By looking at the regional dimension, a larger information set can be … states and comparable euro area regions, the perspectives of a common monetary policy in Europe can be assessed. The US … provides a natural benchmark in this respect. Both the US and the euro area share similar socio-economic characteristics …