The business cycles synchronization in three monetary unions: EMU, WAEMU and CAEMC

International monetary cooperation is, according to theory, seen as the final stage of economic integration. The example of non-European unions shows that it is possible to function within a monetary union and derive benefits from it without first creating a common market or customs union. The aim of this paper is to assess the degree of synchronization of business cycles in three monetary unions: EMU, WAEMU and CAEMC. The study used annual time series illustrating the dynamics of real GDP, which were subjected to the decomposition procedure (Hodrick–Prescott filter). Cycle convergence was examined using spectral analysis. As a result of the conducted research, it can be concluded that the cycles of the EMU countries are more synchronized than the cycles of the WAEMU and CAEMC countries. Cooperation in monetary terms is not enough to achieve a relatively high level of cycle synchronization.

Keywords: monetary union, EMU, WAEMU, CAEMC, business cycles synchronization