The paper analyses within a two-country framework the role of monetary shocks in transmitting macroeconomic fluctuations across countries, with a special emphasis on the case of Romania. The investigation is important as Romania is preparing to give up its monetary sovereignty and become a full...

The present study sheds light on important aspects of monetary integration in the European Union involving the newest member states. It assesses the degree to which they satisfy the business cycle correlation criteria.Our results demonstrate that there is a common business cycle in the Euro area...