| Abstract: | Deeper trade integration between Central America and the UnitedStates, as envisaged under the Central American Free Trade Agreement,is likely to lead to closer links between Central American andU.S. business cycles. This article assesses the degree of businesscycle synchronization between Central America and the UnitedStatesrelevant not only for a better understanding ofthe influence of important trading partners on the businesscycle fluctuations in the domestic economy but for evaluatingthe costs and benefits of macroeconomic coordination. |
