Euro area and CEECs on track for synchronized business cycles.
The article examines how closely the economic shocks in the euro area and Central and Eastern European countries were related in the 1990s. By analyzing output growth and inflation data, the researchers found that some accession countries had similar shocks to the euro area, but many still had unique shocks. As these countries further integrate with the EU, their business cycles are likely to align more closely with the euro area, leading to more synchronized economic shocks.