Catching the Flu from the United States: Synchronisation and Transmission Mechanisms to the Euro Area

The fact that the United States is considered the 'engine' of the world economy has been puzzling for decades. How can it be that an economy, which represents only less than a fourth of world GDP, could still have such a role, particularly when large and fast growing economic players, such as China, are potently emerging in the global economy?

This book explores how and to what extent economic developments in the United States transmit to the Euro area. The issue is examined from different perspectives and using different methodologies. The chapters of the book bring together up-to-date research and stylised facts on the various channels of shock transmission, with special emphasis on financial and trade linkages.

This book is essential reading for all interested in International Economics and Business Cycle Analysis.