Will further integration make business cycles in EMU countries more similar? This article answers the question by analysing to what extent business cycles in US and German states have become more synchronized and by examining whether synchronization in OECD countries is affected by trade...

In this paper we argue that in contrast to the conclusion of Artist and Zhang, there is not much evidence in support of the view that increased exchange rate stability is related to more synchronised business cycles in Europe. This finding may have important consequences, as existing differences...

Soon, euro area membership could more than double, with the vast majority of accession countries being quite different in economic terms compared with current members. Under the current decision-making system, this can lead to high decisionmaking costs and there is a risk that monetary policy...