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The 2008 crisis underscored the interconnectedness of the international business cycle, with U.S. shocks leading to the largest global slowdown since the 1930s. We estimate spillover effects across major advanced country regions in a structural VAR (SVAR) using pre-crisis data. Our new method...
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-thirds of the cumulative current account surpluses of all the world’s surplus countries. Summers thinks that such a unique …
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