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Apocalypse then; The Evolution of the North Atlantic Economy and the Global Crisis


  • Trung T Bui
  • Tamim Bayoumi


The financial crisis, originated from the collapse of US housing markets in 2008, reverberates around the world. Its destructive force was felt nowhere more keenly than Western Europe. Indeed, it continues to mire in financial volatility as the debt problem contagiously spreads around the periphery Euro area. Taking a wider historical view of the evolution over the recent decades of the North Atlantic economy, comprising North America and Western Europe, we argue that while trade links were in relative stasis, the increasing and uniquely-close Transatlantic financial relationship was a crucial conduit in transmitting US shocks into global ones.

Suggested Citation

  • Trung T Bui & Tamim Bayoumi, 2011. "Apocalypse then; The Evolution of the North Atlantic Economy and the Global Crisis," IMF Working Papers 11/212, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:11/212

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    References listed on IDEAS

    1. Michael Ehrmann & Marcel Fratzscher & Roberto Rigobon, 2011. "Stocks, bonds, money markets and exchange rates: measuring international financial transmission," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 26(6), pages 948-974, September.
    2. Francis Vitek, 2012. "Policy Analysis and Forecasting in the World Economy; A Panel Unobserved Components Approach," IMF Working Papers 12/149, International Monetary Fund.
    3. Christopher J. Neely, 2010. "The large scale asset purchases had large international effects," Working Papers 2010-018, Federal Reserve Bank of St. Louis.
    4. Francis Vitek, 2010. "Monetary Policy Analysis and Forecasting in the Group of Twenty; A Panel Unobserved Components Approach," IMF Working Papers 10/152, International Monetary Fund.
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    Cited by:

    1. Tamim Bayoumi, 2014. "After the Fall; Lessons for Policy Cooperation from the Global Crisis," IMF Working Papers 14/97, International Monetary Fund.

    More about this item


    Economic integration; Spillovers; Financial linkages; financial regulation; banking; bonds; bond; banking systems; financial market; Financial Aspects of Economic Integration; Macroeconomic Aspects of International Trade and Finance: Forecasting and Simulation; General Financial Markets: Government Policy and Regulation;

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • N00 - Economic History - - General - - - General
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative

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