Synchronisation of business cycles as a criterion for eurozone membership

The synchronisation of business cycles is one of the most important optimisation criteria within the single currency area, as it eliminates the risk of cyclical inadequacy of the common monetary policy. It thus reduces the cost associated with the loss of autonomy of national monetary policy. The article presents the results of a comparative study of the synchronisation of business cycles business cycles of 4 countries: Poland, Estonia, Slovakia and Slovenia with the business cycle of the euro area. The results indicate that Poland’s business cycle is to a lesser extent synchronised with the euro area cycle than the cycles of Estonia and Slovenia, but to a greater extent than that of Slovakia. This means that Poland would be a better candidate to adopt the single currency than Slovakia. The relatively low level of synchronisation of the business cycle of Slovakia with the euro area indicates that this is not a decisive criterion for for joining the monetary union. Further research into the possible cyclical inadequacy of the common monetary policy in relation to the to the Slovak economy is highly desirable from Poland’s point of view and should therefore be desirable and for this reason should be continued.