Euro area business cycles converge and diverge, impacting global economic synchronization.
The study looked at how business cycles in European countries changed over time from 1960 to 2008. They found that there was a period of business cycle divergence in the mid-eighties, followed by convergence in the nineties leading up to the creation of the European Monetary Union. Even with new countries joining the euro area, the currency union still worked well. Since 2004, Europe's economic cycles have become more in line with global trends.