Arbeitspapier
Business Cycle Fluctuations and International Financial Integration
Theoretical research on the determinants of business-cycle fluctuations implies that the degree of international financial integration can have important implications for the propagation of, e.g., macroeconomic policy shocks in an open economy. An important assumption underlying this research is that the degree of financial integration can be taken as exogenously given. Because recent empirical research has demonstrated that financial integration may change over time, we use data for the G7 countries to test how well this assumption fits to the data. We find that one can maintain, as a rule, the assumption that the degree of financial integration is invariant to the determinants of the business-cycle fluctuations. We find, however, a few exceptions from this rule, and we also find that shocks tend to have a highly persistent effect on financial integration.
- Language
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Englisch
- Bibliographic citation
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Series: Kiel Working Paper ; No. 1197
- Classification
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Wirtschaft
International Monetary Arrangements and Institutions
Open Economy Macroeconomics
Financial Aspects of Economic Integration
- Subject
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Open economy macroeconomics
Business cycles
Financial integration
Konjunktur
Internationaler Finanzmarkt
Aktienmarkt
Marktintegration
Internationaler Preiszusammenhang
Schätzung
G7-Staaten
- Event
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Geistige Schöpfung
- (who)
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Kizys, Renatas
Pierdzioch, Christian
- Event
-
Veröffentlichung
- (who)
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Kiel Institute for World Economics (IfW)
- (where)
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Kiel
- (when)
-
2004
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
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Object type
- Arbeitspapier
Associated
- Kizys, Renatas
- Pierdzioch, Christian
- Kiel Institute for World Economics (IfW)
Time of origin
- 2004