Journal Article

Are international business cycles different under fixed and flexible exchange rate regimes?

Abstract: A major concern surrounding European Monetary Union is that output fluctuations of member countries may become more volatile under a common currency because they will have increased sensitivity to foreign business cycles. This article analyzes the link between exchange rate regimes and the behavior of international business cycles.

Keywords: Business cycles; Foreign exchange rates; Group of Seven countries;

Bibliographic Information

Provider: Federal Reserve Bank of Chicago

Part of Series: Economic Perspectives

Publication Date: 1998

Volume: 22

Issue: Q I

Pages: 46-64