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European Business Cycle Synchronization: A Complex Network Perspective

  • Theophilos Papadimitriou
  • Periklis Gogas
  • Georgios Antonios SarantitisEmail author
Chapter
Part of the Springer Optimization and Its Applications book series (SOIA, volume 100)

Abstract

In this paper we attempt to provide empirical evidence on the issue of business cycle synchronization within Europe. The issue of business cycle convergence is important and very topical as it is a prerequisite for the implementation of an effective and successful monetary policy within a monetary union. We employ Complex Network metrics and we identify the corresponding Minimum Dominating Set of 22 European countries in terms of their GDP growth. An obvious focal point for our comparison of business cycle convergence is the adoption of a common currency (the euro) in 1999. By doing so, we reveal the evolution of GDP growth co-movement patterns of the European economies before and after the introduction of the euro. The main findings from our empirical analysis provide evidence in favor of macroeconomic convergence after the introduction of the common currency.

Keywords

Monetary Policy Business Cycle Monetary Union European Monetary Union Common Currency 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer International Publishing Switzerland 2014

Authors and Affiliations

  • Theophilos Papadimitriou
    • 1
  • Periklis Gogas
    • 1
  • Georgios Antonios Sarantitis
    • 1
    Email author
  1. 1.Department of EconomicsDemocritus University of ThraceKomotini, RodopiGreece

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