Darvas, Zsolt; Rose, Andrew K.; Szapáry, György - 2005
positions tend to have business cycles that fluctuate more closely. That is, fiscal convergence (in the form of persistently … similar ratios of government surplus/deficit to GDP) is systematically associated with more synchronized business cycles. We … also find evidence that reduced fiscal deficits increase business cycle synchronization. The Maastricht "convergence …