Gains from Synchronization

نویسندگان

  • William A. Barnett
  • Mehmet Dalkir
چکیده

This paper investigates the transmission mechanisms of noise and volatility between economies through trade links, and the e ects of synchronization on business cycles. We investigate the transmission of outside noise and the uctuations that the noise generates. We identify conditions under which international economic links reduce the economic output noise emanating from noise within the individual economies. Under certain conditions, devaluation of a country's currency causes reduction in the business cycle noise and volatility as seen by that country's exporters, while increased valuation of a country's currency produces higher noise and volatility, as seen by the country's importers.

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تاریخ انتشار 2005