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Ten years ago, the global financial crisis started to unwind in the USA and triggered the greatest recession since … World War II. Although the crisis of 2007-08 was caused in the USA, their economy was not hit so hard in the Great Recession … of 2009 as in Europe, and in particular in the Euro area. The USA also recovered more rapidly and sustained from the …
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It is difficult to identify the driving forces behind financial market developments as they are not directly observable. The paper argues that correlations between asset prices in different markets can be used to infer which of five macroeconomic factors that drive markets (growth and inflation...
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