Cyclical Synchronization of the Czech Republic and the Euro Area: A Case of Structural Discrepancies in a Time-Frequency Domain. Issue 5 (2nd September 2020) - Bednář, Milan
ABSTRACT: The paper investigates the cyclical synchronization of the Czech Republic with the euro area and compares it to the synchronization of Germany and Austria (the benchmark). We employed a wavelet coherence analysis with four macroeconomic variables and monthly data from 1995 to 2019. Our results suggest that the Czech Republic suffers from significant structural disparities in synchronization at high frequencies. The country is related to most of the euro area countries only indirectly. Additionally, both benchmark countries are well synchronized with the euro area at almost all frequencies, except Austria in the manufacturing sector.