We live in a new world economy characterized by financial globalization and historically low interest rates. This … in this world. The interest-rate and terms-of-trade spillovers produce policy externalities that make the noncooperative …

The recent financial crisis has shown how interconnected the financial world has become. Shocks in one location or … asset class can have a sizable impact on the stability of institutions and markets around the world. But systemic risk …

between integration and synchronization depends on the type of shocks hitting the world economy, and that shocks to global …