One Money, One Market? - An Empirical Study on the Effect of the Euro on Business Cycle Synchronization
The theory of optimal currency areas (OCA) states that different regions need to comply to certain criteria in order to benefit from a monetary union (Mundell(1961); McKinnon(1963) and Kenen(1969)). One of the most important OCA properties is similarity between business cycles (Masson and Taylor, 1993, p. 274). In the debate preceding EMU critiques argued that the European countries were subject t