ECCU Business Cycles: Impact of the U.S.
IMF Working Papers, April 1, 2009
Source details
- Canonical URL
- ECCU Business Cycles: Impact of the U.S.
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Bibliographic details
- Authors: Yan M Sun, Wendell A. Samuel
- Published: April 1, 2009
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451872187.001
Authors and publication
- By Yan M Sun, Wendell A. Samuel
- April 1, 2009
- IMF Working Papers, Working Paper No. 2009/071
- Issue: 071
- Volume: 2009
- Pages: 23
- DOI: https://doi.org/10.5089/9781451872187.001
- Stock No: WPIEA2009071
- ISBN: 9781451872187
- ISSN: 1018-5941
Research objective and scope
- Analyze the impact of the United States on ECCU business cycles given a fixed peg to the U.S. dollar for more than three decades and tourism dependence in the Eastern Caribbean Currency Union (ECCU) countries.
- Identify possible transmission channels from the U.S. to ECCU economies.
Methods
- Two empirical approaches:
- The common trends and common cycles approach of Vahid and Engle (1993).
- Standard VAR (vector autoregression) analysis.
Key findings
- Sensitivity to U.S. economic movements:
- The ECCU economies are very sensitive to both temporary and permanent movements in the U.S. economy.
- The linkages between the U.S. and ECCU business cycles have strengthened over time.
- Transmission channels:
- Evidence on specific transmission channels is less clear-cut.
- United States monetary policy does not appear to be an important channel of influence.
- Tourism is important as a transmission channel for only one ECCU country.
- Subject areas covered (as listed):
- Balance of payments, Business cycles, Commodity prices, Econometric analysis, Economic growth, Financial sector policy and analysis, Prices, Remittances, Spillovers, Vector autoregression.
Keywords (as listed)
- Business cycles, Caribbean, Central America, Commodity prices, ECCU business cycles, ECCU country, ECCU economy, ECCU growth cycle, ECCU member, ECCU sample, linkages, real GDP, Remittances, Spillovers, United States, Vector autoregression, WP
Metadata and access
- Format on landing page: web landing page with link to Download PDF and More Formats on IMF eLibrary.
- Citation preview provided on page (example format shown):
- Yan M Sun, and Wendell A. Samuel "ECCU Business Cycles: Impact of the U.S.", IMF Working Papers 2009, 071 (2009), accessed 9/9/2026, https://doi.org/10.5089/9781451872187.001
Source: ECCU Business Cycles: Impact of the U.S., IMF Working Papers (Working Paper No. 2009/071) by Yan M Sun and Wendell A. Samuel, April 1, 2009.