Decoupling: Myth or Reality?

Bernhardt, Thomas (2010): Decoupling: Myth or Reality?

Abstract

When, in the mid-2000s, large parts of the global South experienced an impressive economic boom, the idea that a number of emerging market economies were “decoupling” from the industrialized economies in the North gained considerable prominence. The financial and economic crisis that originated in the US and the global recession that it entailed, however, put this idea into question. The present paper analyzes different channels of crisis transmission and crisis effects in emerging markets (and the BRIC countries in particular) to demonstrate that decoupling is a myth rather than reality.

• Item Type: MPRA Paper
• Language: English
• Keywords: Decoupling, Emerging markets, Economic crisis, Transmission channels, Dependence
• Subjects: F - International Economics > F1 - Trade; F - International Economics > F3 - International Finance; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F44 - International Business Cycles; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O19 - International Linkages to Development ; Role of International Organizations

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