Network Effects of International Shocks and Spillovers
Author: Mr.Alexei Kireyev
Publisher: International Monetary Fund
Published: 2015-07-07
Total Pages: 43
ISBN-13: 1513500651
DOWNLOAD EBOOKThis paper proposes a method for assessing international spillovers from nominal demand shocks. It quantifies the impact of a shock in one country on all other countries. The paper concludes that the network effects in shock spillovers can be substantial, comparable, and often exceed the initial shock. Individual countries may amplify, absorb, or block spillovers. Most developed countries pass-through shocks, whereas low-income countries and oil exporters tend to block shock spillovers. The method is used to study demand shocks originating from a large and medium country, China and Ukraine respectively.