Global Interdependence, Decoupling, and Recoupling

One lens through which to view global economic interdependence and the spillover ofshocks is that of decoupling (and then recoupling). Decoupling between developed and developingcountries can be seen in the strong economic performance of China and India relative to that of theUnited States and Europe in the early 2000s. Recoupling then took place as developing countries sankalong with the developed world during the deepening financial crisis of 2008. This volume examinespatterns of global economic interdependence and the propagation of shocks in an increasinglyintegrated world economy.

The contributors discuss such topics as the transmissionof exogenous shocks; causes of business cycle synchronicity; the differences between global andregional shocks; the South-South trade relationship and its effect on decoupling; verticalspecialization and Mexico's manufacturing exports; growth prospects in China, the United States, andEurope after the financial crisis; and the evolving role of the U.S. dollar in internationalmonetary architecture.

ContributorsHelge Berger, RossellaCalvi, Yin-Wong Cheung, Gianluca Cubadda, Justino De La Cruz, Filippo di Mauro, Michael Dooley, EijiFujii, Linda S. Goldberg, Barbara Guardabascio, Alain Hecq, Hideaki Hirata, Robert B. Koopman, M.Ayhan Kose, Marco J. Lombardi, Steven Lugauer, Nelson C. Mark, Volker Nitsch, Christopher Otrok,Tuomas Antero Peltonen, Gabor Pula, Pierre L. Siklos, Zhi Wang, Shang-Jin Wei, FrankWestermann

Frank Westermann is Professor of Economics and Director of the Institute of Empirical Economic Research at Osnabrueck University, Germany.