Series: Occasional Papers. 1914.
Author: María Dolores Gadea-Rivas, Ana Gómez-Loscos and Eduardo Bandrés.
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Abstract
The analysis of regional business cycles in Europe highlights the existence of a high degree
of heterogeneity. However, clusters of regions that share similar behavior can be identified.
The identification of these different groups should reveal territorial singularities that each
country faces and, therefore, the need to complement the common macroeconomic policies
with others aimed at addressing region-specific features specific. The paper shows that the
introduction of the euro was key to increase the synchronization of regional business cycles, as it meant a greater distance between the central group of European regions and the countries that were left out of the single currency. It is also noteworthy that, despite the effect of the euro, important singularities remain between the German regions, on the one hand, and between those of Greece, Portugal and Italy, on the other.