Our study bridges the gap between in previous research on the synchronization
between financial and business cycles over a long period. Using the data for the UK from 1270 to 2016
we analyze the synchronization between financial and business cycles using spectral Granger causality
(Breitung & Candelon, 2006). Our paper brings several important findings to the discussion on the
financial and business cycle link. Our paper is the first one (to the best of our knowledge) that use
data over a long period spanning several centuries. We use spectral analysis and advanced spectral
analysis (SSA) and (MSSA) to study the relationship between financial and business cycles in the long
run. Paper results show financial and business cycles series moves along over the medium-term spectrum.
We find a strong link between the cyclical component in the output (real GDP series) and the cyclical
component in the financial series (housing price, credit).