IMF paper identifies countries that ‘pass through’ spillovers
Individual countries can amplify, absorb or block spillovers
Some countries are more likely to pass on shocks than others – typically developed economies or major trading nations – and the macroeconomic policies in those countries "play an important role in preserving global stability", according to a working paper published by the IMF on July 6.
In Network Effects of International Shocks and Spillovers, Alexei Kireyev and Andrei Leonidov argue individual countries can amplify, absorb or block spillovers, depending on their economic and structural
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