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Both global and regional economic linkages have strengthened substantially over the past quarter century. We employ a dynamic factor model to analyze the implications of these linkages for the evolution of global and regional business cycles. Our model allows us to assess the roles played by the...
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staggering are common, This paper analyzes how synchronization of price changes affects the response to monetary policy shocks. I … synchronization in price setting. …
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generate stronger comovement, because they combine shock propagation with synchronization of endogenous dynamics. In particular … synchronization. Next, we calibrate the model to data on 24 countries and show that the empirical level of comovement can only be …
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