It is widely accepted that international trade is an important force transmitting business cycles from one country to another. Metaphors such as "when the U.S. sneezes, Europe catches a cold" are often invoked to illustrate the importance of these linkages. Recent empirical research has...

[...]In our view, this apparently surprising immunity of the U.S.economy to the Asia crisis reflects the fact that the original wayof thinking about the crisis was flawed. First, it focused only ondemand-side channels and ignored the supply side. Second, thedepreciation of the Asian currencies...

[...]In this article, we shed light on the globalizationof international production and trade by demonstratingthe increasingly important role vertical specializationplays in international trade. We use case studies andinput-output tables to calculate the level and growth...