We estimate a modified version of the "Financial Business Cycles" model originally developed by Iacoviello (2015) in … order to investigate the role played by financial factors in driving the business cycle in the euro area. In the model …

open- ness, exchange rate regime, fiscal variables). We find that trade integration fosters the spill-over of business … countries’ vulnerability to foreign business cycles, presumably through the effect of automatic stabilisers. …

developments, a broad consensus exists in the economics profession around the view that the collapse in financial intermediation …

parameters in many fields of economics. Until recently, though, the application of production functions with non … normalization in recent advances in the theory of business cycles and of economic growth. Next, we discuss the benefits …

-degree of synchronisation across the globe. In addition, the estimates find that stockbuilding, business confidence and credit …

parameters in many fields of economics. Until recently, though, the application of production functions with non … normalization in recent advances in the theory of business cycles and of economic growth. Next, we discuss the benefits …

business cycle synchronisation and disentangles the role of the various channels, including trade and financial linkages as … well as the similarity in sectoral specialisation. Overall, our results confirm that trade integration fosters business … cycle synchronisation. Similar patterns of sectoral specialisation also lead to closer business cycle co-movement. By …