This paper explores whether similarities in production structures have been an important determinant of business cycle co-movement in the Euro Area. I construct an index of cross-country differences in industry composition using value added data from 62 sectors. Then I test whether this...

This paper uses a DSGE model of two small open economies to explain certain features of real exchange rate cyclical fluctuations in countries with fixed and flexible exchange rates, focusing on the role of traded and non-traded goods prices. In particular, the model illustrates why the relative...