We present the business cycles results of European Union Countries in terms of volatility, persistence and cross country correlation. The results are in line with business cycles stylized facts and show a high degree of cross country correlation between member countries, although the...

After the banking crises experienced by many countries in the 1990s and in 2008, financial market conditions have turned out to be a relevant factor for economic fluctuations. The purpose of this paper is to determine whether frictions in financial markets are important for business cycles, and...