Beaudry, Paul; Dupaigne, Martial; Portier, Franck - In: Review of Economic Dynamics 14 (2011) 1, pp. 72-91
This paper reexamines the question of how to explain business cycle co-movements within and between countries. First, we present a simple flexible price models to illustrate how and why news shocks can generate robust positive co-movements in economic activity across countries. We also discuss...