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Macroeconomic Policy Analysis for Regional Coordination in the ESCWA Region: Business Cycle Synchronization and Macroeconomic Policy Coordination

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The increasing trend towards regional and international globalization is presenting the ESCWA region with several monetary and fiscal challenges. Given the low level of economic integration within the ESCWA region, this study examines the case for increased policy coordination and, ultimately, the adoption of a common single currency. To achieve this objective, this report assesses the relationship between trade intensity, economic structure and the degree of business cycle synchronization in the ESCWA region. The study concludes that the time for adopting a common currency for the ESCWA region has not yet arrived.