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Business cycle asymmetries and the nominal exchange rate regimes

Weshah Razzak

This paper investigates differences in time series behaviour of real output and the price levels in seven countries (the United States, the United Kingdom, Germany, Japan, Canada, Australia, and New Zealand) under alternative exchange rate systems. Quarterly data spanning the Bretton-Woods and the subsequent floating exchange rate regimes are used to test whether or not the cyclical fluctuations of output and price levels are symmetric. It is shown that the evidence of asymmetries depends on the prevailing nominal exchange rate regime and the method used to de-trend the data.
Razzak, Weshah (2001). ‘Business cycle asymmetries: International evidence’, Review of Economic Dynamics, Elsevier, Volume 4(1), Pages 230-243, DOI: https://doi.org/10.1006/redy.2000.0109.