Spillovers of Domestic Shocks : Will They Counteract the 'Great Moderation'?

Spillovers of Domestic Shocks : Will They Counteract the 'Great Moderation'?
Get Code Buy
Journal Issue
Share
Volume/Issue:
2010/78
Series:
IMF Working Papers
Author(s):
Ashoka Mody, and Alina Carare
Publisher:
INTERNATIONAL MONETARY FUND
Published Date:
March 2010
DOI:
http://dx.doi.org/10.5089/9781451982213.001
ISBN:
9781451982213
ISSN:
1018-5941
Page:
29
Even prior to the extreme volatility just observed, output growth volatility-following protracted decline-was flattening or mildly rising in some countries. More widespread was an increasing tendency from the mid-1990s for shocks in one country to transmit rapidly to other countries, creating the potential for heightened global volatility. The higher sensitivity to foreign shocks, in turn, appears related to stepped-up vertical specialization associated with the integration of emerging markets in international trade. Increased international spillovers call for stronger ex post coordination mechanisms when shocks are large but the best ex ante prevention strategy probably is sensible national policies.
Article

Spillovers of Domestic Shocks

Author(s):
Ashoka Mody, and Alina Carare
Published Date:
March 2010
    Share
    • ShareShare
    Show Summary Details
    You are not logged in and do not have access to this content. Please login or, to subscribe to IMF eLibrary, please click here

    Other Resources Citing This Publication

    look up citations for this publication in google scholar