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 … neutral countries. The authors quantify the costs of such a worst-case hard decoupling using the (Baqaee and Farhi 2021) multi … permanent loss in the 1-2 percent range. Less extreme decoupling or gradual de-risking scenarios ("small yard, high fence …