• Bîtcă Bîtcă Robert, Preotu Veronica, Radu Gabriela, Toniţă Ana-Maria (2007)

The influence of adopting the Euro on economic cycles, “Young Economists” Conference, National Bank of Romania, september 2007, to be published by “Editura Enciclopedica”.

This paper examines the syncronisation between business cycles in Romania and countries from the euro area, using comparisons and a control group. To this end we use four measures of the business cycles (corelation quoficients, lead/lags, volatility and persistence), extracted by two filters (Hodrick – Prescott and Band – Pass) and, to measure economic activity, deseasonalized real output. Our first purpose is to analyze the degree of sycronisation between Romanian and Euro Area economies to observe whether Romania satisfies the optimum currency area criteria, syncronised business cycles. Our second purpose was to observe whether business cycles’ syncronisation between euro area countries grew as they adopted the euro, to prove the endogeneity of the OCA.