Briefing

Economic Effects Everywhere All at Once


Abstract: The recent tariffs have brought global trade linkages to the forefront of academic and policy discussions. The global swings in the stock market and sentiment measures have emphasized how U.S. economic policy and conditions have important implications internationally. This global interconnectedness has been present for decades and spurred much academic research even prior to recent developments. Indeed, output and inflation have moved in parallel across countries for many years now. While economists continue to analyze and quantify the sources of this comovement, cross-country linkages are clearly an important factor in driving economic fluctuations in each country. In this article, we examine the interconnectedness of countries' economies and what drives this comovement.

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Description: Briefing

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Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Richmond Fed Economic Brief

Publication Date: 2025-06-25

Volume: 25

Issue: 25