Baqaee, David; Hinz, Julian; Moll, Benjamin; … - 2024
How would the German economy cope with a hard economic decoupling from China? The authors study a scenario where the … global economy fragments into three distinct blocs: the G7 economies and their allies, China and her allies, as well as … neutral countries. German trade with China would have to be entirely rerouted to countries within the "Western" block and …