BoE’s Forbes studies generation of ‘global tsunamis’
Countries’ financial linkages, common shocks and contagion may offer clues
Some shocks to the global economy leave hardly a ripple while others can "turn into global tsunamis", Kristin Forbes told an audience in London today (September 22). She believes financial links may explain much of this divergence.
Speaking at Imperial College, the external monetary policy committee member highlighted the strong synchronisation of equity markets, and how this served to transmit shocks across borders. Though growth tended to show less co-movement during times such as the global
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