We analyze the role of fiscal policy and intra-European trade in business cycle synchronization in the EU for the … between trade integration and cyclical synchronization are subject to endogeneity problems. We instrument fiscal budget … trade integration are important determinants of cyclical synchronization. We can conclude that once a high degree of trade …

States in the region economy, we use these three economies as our "reference countries" to study the synchronization of their … synchronization of their business cycles, including trade linkages, financial linkages, and policy similarities. From our panel data … the degree of their business cycle synchronization. …

specializations and economic policy coordination, contributed to the synchronization of business cycles in the enlarged EU. We … synchronization, specifically between incumbent and new EU members. More coordinated fiscal policies and, particularly in EU 15, the … alignment of monetary policies promoted synchronization. Nevertheless, flexible exchange rates remained important adjustment …

In this paper, we focus on how European economic integration has affected the synchronization and the magnitude of … business cycles are highly synchronized, although we also find that synchronization was higher during periods with highly … flexible exchange rates. In addition we find a positive tradeoff between timing and magnitude such that more synchronization …